Organizations with large inventory operations work with multiple levels of supply. Central sites purchase and stock most of the items. Slow-moving and less important items can be sent quickly to remote sites when needed, while fast-moving items are stored closer to the customer to enable more rapid customer service.Read More
Inventory Planning Blog
Reports and Spreadsheets– An Unproductive Combination for Inventory Planning
Reports and spreadsheets should be used to provide a basic level of information. However, many companies and planners use reports & spreadsheets to completely manage their inventory. To understand the use of these tools on effectiveness and efficiency in inventory planning let’s explore each one independently.
Cloud Applications Going Forward
Advances in technology have allowed previous concepts like Time-Sharing and Shared servers and services to become a reality. Cloud computing today has real meaning and positive impact for companies in a true global economy. The future is that more business applications for mobile computing will be available and virtual software appliances will be developed.
Danger Ahead! Inherent Challenges When you Need to Combine MRP & DRP Inventory Planning
Achievable Bottom Line Results
WAYS TO IMPROVE REPLENISHMENT PLANNING
Intelligent replenishment inventory planning includes several components, of which forecasting is just one element. Complete, automated planning systems handle all behavior including low volume items as part of a total process. Advanced planning solutions also incorporate inventory optimization, which dramatically improve replenishment planning. Why? Because optimization considers the wild cards in planning. It considers how random the demand of an item is, i.e., standard deviation and service level objectives, and it does it for each item, at every location, leaving nothing to chance (no spreadsheet can do that!)
THREE COMMON SENSE APPROACHES TO INVENTORY PLANNING
How should a planner set the reorder point and reorder quantity (or order-up-to level) for thousands of items, perhaps at multiple locations? Due to the absence of an "intelligent‟ planning system, three commonly used approaches have been Brute Force Review, Economic Order Quantity, and Periods of Supply, usually done in spreadsheets.
STEPS IN THE PLANNING PROCESS
Companies approach their inventory planning in many different ways - from seat of the pants guessing, team collaboration, and spreadsheets. More and more companies are using forecasts either developed in-house or off-the-shelf forecasting packages.
What state is your business in?
Until recently Small and Mid-size Businesses (SMB) did not have affordable, easy to use software tools to help them effectively manage and balance their inventory investment. Software solutions that forecast, plan and optimize an inventory are found in widespread acceptance in large enterprise companies but these solutions can cost between hundreds of thousands to millions of dollars and are generally not affordable or usable by SMBs.
In the vast majority of SMBs, spreadsheets are the common tool in use. They are time-consuming to build and maintain, are usually static data repositories, and according to a prior study by a major consulting firm over 90% of them contain significant errors. But they do serve a purpose. Inventory-laden companies like manufacturers, wholesalers, retailers, and aftermarket service organizations often see that inventory is their largest asset. The cost of carrying excess and obsolete stock, as well as not having sufficient saleable inventory to meet demand is enormously high.
Did you know that certain inventory planning solutions are easier to use than ever? Until recently Small and Mid-size Businesses (SMB) did not have affordable, easy to use software tools to help them effectively manage and balance their inventory investment. Software solutions that forecast, plan and optimize an inventory are found in widespread acceptance in large enterprise companies but these solutions can cost between hundreds of thousands to millions of dollars, take months to implement and are generally not affordable or usable by SMBs.
Tags: Inventory Planning, SAP, inventory optimization, Forecasting Inventory, optimization, cloud computing, NetSuite, Demand Planning, replenishment planning, Wholesale Distribution, Supply Chain, inventory management
Every once in while, we like to toot our own horn. One of our newer customers, and a long time NetSuite customer, Inkjetsuperstore.com (www.inkjetsuperstore.com), recently shared their experience with implementing VALOGIX Inventory Planning V8 (our SaaS product).
"We are using the Valogix cloud-based application and it was a great decision. It allows me to do my planning anywhere, at any time and is a natural fit with our NetSuite applications," said Ilan Douek, President of Inkjetsuperstore.com.