Inventory Planning (IP)

Inventory Planning is one of the most important aspects of supply chain planning. Inventory carrying cost is typically the most expensive and risky aspect of logistics and supply chain management. Executing supply replenishment based on forecasts with high error results in multiple challenges like:

  • Excess inventory of some products and not enough of others.
  • High overall inventory; excess cash tied up in inventory and poor cash flow.
  • Increased cost and waste in the end-to-end supply chain leading to reactive breaks in production schedules, unplanned production changeovers, shipments from non-primary sources and obsolescence if stock ages (beyond) its shelf life date.
  • Service problems; if execution and expediting actions or excess inventory does not cover customer orders that are different than the forecast.

Supply Chain directors are beginning to realize that, in order to improve their forecast, they also need to leverage downstream data to better predict what, where, when and how much to replenish based on what is being consumed downstream. The more advanced companies are already able or are experimenting with Vendor-managed Inventory (VMI) replenishment based on warehouse inventory and movements.  Point of Sale (POS) data reflecting consumer demand also becomes an enablement with VMI.

Technology will also be used to enable pattern recognition and predictive planning based on improved demand projections.

ICRON’s Advanced Inventory Planning solution for inventory planning and optimization will minimize excess inventory without compromising customer service levels. Your company can enjoy benefits like a permanent reduction in working capital, or increased sales and higher customer satisfaction. With ICRON you can increase inventory turns  ̶  a key differentiator between highly successful and less successful company performance.

Benefits and features of ICRON Inventory Planning solution are:

  • Freeing up working capital by inventory optimization
  • Optimized distribution of products among alternative inventory locations
  • Lowering inventory levels while keeping high customer service levels
  • Automated data extraction and information preparation through easy integration with existing ERP systems and databases
  • Fast and robust What-if analysis capabilities with multi-scenario comparison
  • Decreased inventory planning cycles