Inventory can either be a source of competitive advantage or crippling costs for today’s supply chains.
The challenge for inventory managers is to reduce excess inventory (which ties up working capital and drives up costs) to the lowest levels possible, while avoiding stock-outs (which lead to poor delivery performance and customer service).
Given the unpredictability and complexity of customer demand and product supply capabilities, effectively managing inventory – to minimize costs and risk exposure and maximize efficiency, profitability, and customer satisfaction – is an extremely challenging task that requires superior supply chain visibility and inventory optimization.
Lacking these capabilities, many companies struggle to align inventory replenishment decisions with orders, forecasts and customer service level targets, resulting in:
- Excess inventory and increasing obsolescence costs.
- Stock-outs and ensuing production difficulties and delays, and – ultimately – plummeting customer service levels.
To achieve a perfect state of equilibrium between inventory costs and customer service level requirements, a growing number of companies are turning to intelligent solutions to optimize inventory decisions.
ICRON Inventory Planning (IP) gives companies the capability to:
- Generate optimal inventory plans (both single and multi-echelon) that lower inventory levels while improving customer service levels.
- Have full visibility and control over inventory positions – to be able to know and predict what, where, when, and how much to replenish at any given time with great precision.
- Rapidly revise inventory plans in real-time to take into account changing market conditions, fluctuations in customer demand, business rules and goals, and supply chain constraints.
- Conduct what-if analysis to compare different scenarios and fine-tune inventory policies.
- Reduce excess inventory, stock-outs, and obsolescence costs.
- Free up working capital and increase inventory turns and sales.
With ICRON IP, companies can achieve inventory optimization, transforming inventory management from a source of potential costs and risk in their supply chain into a key driver of service excellence and revenue growth.