Inventory Planning Blog

Why are Inventory Optimization Algorithms Important?

Posted on Tue, Oct 08,2019@11:26 AM

There are a lot of inventory planning solutions from all around the world. Many are designed for large enterprise companies. They cost hundreds of thousands of dollars and are highly complex. Some are so complex a math or science degree is required just to operate the system. Others, at the low end, may only be point solutions for forecasting, as an example, or offer individual modules you need to buy separately. Several of these solutions include a forecasting capability either their own platform or from an included third-party provider. Most have you select the appropriate forecast method and require you to manually set replenishment levels, like min & max. How is this any better than using a spreadsheet?

How many offer real inventory optimization and why is this important? There are many reasons why inventory optimization is critical for conducting business in today’s ever challenging economic and consumer-oriented climate. An advanced supply chain planning system should also rationalize the inventory levels and investment in light of the expected demand and other variable conditions.

First, what is the cost of carrying, holding and managing an inventory?  The costs for most items are steadily increasing, real estate costs and taxes are up and shipping costs are through the roof. Inventory optimization provides a great balanced inventory to meet expected demand, while reducing costs and better controlling spend for additional stock purchases. Planning in a timelier manner reduces the need for expediting orders in from vendors, which in-turn reduces the need for expediting shipments to customers.

Second, inventory optimization dramatically improves the financial performance of an inventory because buying and stocking are more in-line with expected customer demand. It helps to reduce and almost eliminate the future build-up of excess inventory and dead stock.

Third, there are too many known and unknown variables that can affect your inventory and subsequent customer service levels to manage properly. Just forecasting and planning your inventory leaves you wide-open to problems in meeting both your financial goals and customer expectations.

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Tags: inventory optimization

Procuring a Value-Driven Inventory Planning Solution

Posted on Tue, Sep 10,2019@02:34 PM

When purchasing items for your business, you need to properly assess the value of what you are buying.

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Inventory Planning in the Cloud is Growing

Posted on Tue, Aug 06,2019@10:40 AM

What is your position about planning in the Cloud? What are your competitors doing or likely to do? Are they staying the course on-premise or are they adopting new methods and technologies to improve their business performance? Are they already in the Cloud

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Tags: cloud computing

Inventory Life Cycle for Parts

Posted on Tue, Jul 09,2019@12:04 PM

Previously, we discussed the different industries, uses and planning of parts. Today, the OEM replacement of parts is happening at an ever-increasing rate as technology allows for improvements in performance and longevity.
The graphic below shows the important milestones in a part’s life cycle. These have an impact on inventory planning for each item. This section examines how those milestones impact parts planning.

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Tags: SPARE PARTS INVENTORY PLANNING

Spare & Service Parts Inventory Planning Software

Posted on Tue, Jun 04,2019@11:34 AM

Inventory planning for aftermarket and OEM parts require appropriate skill sets and knowledge of the industry, markets and the customers. Advanced inventory planning software is critical to successful manage parts and meet tough customer demands and timing. 

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Tags: SPARE PARTS INVENTORY PLANNING

Parts Inventory Management & Planning Varies by Industry

Posted on Tue, May 07,2019@07:34 AM

 

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Tags: spare arts inventory planning, Inventory Planning Solutions

What has the Duke of Wellington got to do with supply chain planning?

Posted on Tue, Apr 09,2019@06:08 AM

What You Don’t Know but Soon Will                                                                                     

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Tags: Supply Chain, supply chain planning, logistics management

Effective and efficient supply chain inventory planning for the 21st Century

Posted on Tue, Apr 09,2019@05:45 AM

Your Choice to Change is Not So Easy, or is It?   

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Tags: advanced inventory planning solutions, forecasting

Spreadsheets and Inventory Planning

Posted on Tue, Mar 05,2019@06:44 AM

The vast majority of companies that maintain an inventory use spreadsheets and reports. Some companies have had their overburdened IT departments build them a custom solution. In the scheme of things, these choices may work for a time but after a while they become a barrier to successful inventory planning. So, do you stay with the manual burdensome current process or move to a better way to plan? 

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Tags: advanced inventory planning solutions

Fire and Ice Inventory Planning

Posted on Tue, Feb 05,2019@08:47 AM

Effective and efficient supply chain inventory planning teams are absolutely critical to meet the ever-increasing demands of customers. Teams are getting fired up to meet the company goals and deliver service excellence. There is a dizzying array of solutions and methods companies employ to manage their supply chain hoping to manage their unique challenges. 

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Tags: Inventory Planning, Supply Chain

Supply Chains Quake as Stock Market Jitters Continue

Posted on Tue, Jan 08,2019@08:52 AM

2018 ended on a lot of stock market jitters over the trade war with China. The markets lost most, if not all, their gains and then some. The outlook for global economies and growth opportunities have also cooled. Brexit, the UK exit from the EU, is disrupting supply chains. Inventories are building and planning for them has become more erratic.

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Tags: stock forecasting, e-Commerce

Three Customer Experience Myths, According to Gartner Cloud Analysts

Posted on Tue, Dec 04,2018@08:43 AM

Gartner for the CloudThe performance gap between customer experience leaders and runners-up is widening, with those on top being disproportionately rewarded. Gartner Inc. said organizations must ignore three myths in order to achieve a superior customer experience.

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Tags: cloud

Achieving a Well-Balanced Inventory – The Metrics

Posted on Tue, Nov 06,2018@11:08 AM

Achieving a well-balanced, efficient inventory is no small task as supply chain complexity is ever increasing. How do you get there and how do you know when you have arrived? Understanding and using some basic financial and accounting methods along with an advanced inventory optimization solution will help get you there and keep you there.

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Valogix customers tell their inventory planning success stories Part 2

Posted on Tue, Oct 09,2018@01:18 PM

Herramientas Poderosas (HP)

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Tags: SAP Business One, inventory optimization, Spreadsheets, inventory management

Customers tell their inventory planing success story Part 1

Posted on Mon, Sep 10,2018@05:50 AM

UK Laboratory Equipment Distributor

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Tags: Demand Planning, Supply Chain, Balloon One, Inventory Planning Solutions