Inventory Planning Blog

Supply Chain in the Cloud Recap

Posted on Tue, Dec 08,2020@10:31 AM

Customers will always demand more of suppliers to provide affordable products at the exact moment they want them. How can you effectively insure you have what your customers need when they need it?

Customer SatisfactionTo help companies develop more effective supply chains, Valogix and DSI Global announced their 2020 Expert Series Webinar program. The goal is to provide companies with specific information from leading industry experts to help improve companies’ supply chain performance.

The first Expert Series Webinar was held on March 19th and featured industry expert Bob Jackson. Bob showed how tracking inventory velocity in concert with an advanced inventory planning solution can dramatically impact performance. These are critical components of the overall Inventory management strategy.

The second Expert Series Webinar was held on June 18th and featured industry expert Kevin DeLine, Senior Director Industry Solutions with DSI. Kevin explained how warehousing strategies and operations flow directly from the overall Inventory Management strategies. Warehousing strategies and operations in concert with an advanced inventory planning solution not only improve performance but also can provide a positive impact to the bottom line.

Inventory Planning strategy

Optimized Inventory Planning in the Cloud with ValogixWhat 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? How are you dealing with the COVID crisis?

Inventory experts consistently finds that items with the greatest number of order lines often account for 80% or more of a company’s total business. By increasing safety stock for these items can significantly improve the overall fill rates and increase sales. These items are the ones your customers are asking for and that focusing on these items is “listening” to your customers. If you aren’t focused on these items, you aren’t listening to your customers especially if you are running out of stock.

An advanced inventory planning and optimization solution is a key component to inventory performance excellence. They are smart systems that forecast and plan optimal inventory requirements while holding costs in check. They are superior to commonly used types of software; standard inventory transaction software and spreadsheets. Many of these solutions are both strategic and tactical tools. They cover long range inventory budget planning down to daily replenishment and problem solving.

Leading-edge companies around the world that have moved to the Cloud with advanced inventory planning realized many of the following benefits in addition to those achieved by going to the Cloud:

    • Reduced inventory investment by 20% or more
    • Reduced expediting and emergency shipments by 35% or more
    • Improved planner productivity by reducing planning time by 60% - 80% or more
    • Ability to control and reduce replenishment spending by 15% or more
    • Stock-outs reduced by 12% - 22% or more
    • Increased productivity by 5% to 10%
    • Improved employee and customer satisfaction

In Conclusion:

The successful, high-performance supply chain inventory process flow is as follows:

Inventory Strategy guided by:

      • Customer Service Goals
      • Investment Capability & ROI
      • Tools and Expertise

Warehouse layout impacted by Inventory Strategy:

                  • Racking decisions
                  • Equipment decisions

Operations impacted by Inventory Strategy & Warehouse layout:

                              • Put-away Strategies
                              • Allocation Strategies
                              • Picking Strategies

Valogix provides the critical tools for planning and executing your supply chain and customer service strategies in the Cloud. These automated, intelligent tools help to improve your competitive advantage by keeping inventory costs low and availability high, so you can focus on customer service. These tools allow any employee to use them anywhere, anytime freeing up resources to do what you do best - sell and service your products. This combination of technologies allows you to work smarter by easily adapting all aspects of inventory management into one advanced, simple-to-employ action plan.

See dramatic results from 2 prestigious Valogix Customer Success Case Studies: Sunset Health Care and RediBag USA

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Tags: cloud computing, Supply Chain