Slimstock

It is a translation of your business strategy to your inventory strategy: you are deciding to what extent you want to satisfy your customer’s needs based on your stock capacity. If it is based on the right criteria, it should fit with your company’s strategy and the capacity of its processes. In conclusion, the right determination of your service level can have a considerable effect on your margin, but it can also give your insight into the extent to which your internal processes and their capacity can be improved and aligned to your organizational goals. Superficial quantitative criteria like turnover (ABC analysis) and the cost of safety stock inventory should also be taken into consideration.

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Failure to recognize the differences in demand characteristics can result in the application of inappropriate planning techniques and create undesired fallout like excess inventory, wild swings in replenishment plans, late promotional deliveries, and more frequent stock-outs. Slimstock’s Slim4 Inventory Optimization software automatically recognizes what stage of lifecycle a product is in, and systematically analyzes demand history or replenishment challenges before scientifically applying the optimal planning strategy. Slim4 seamlessly integrates with any ERP system and applies academically supported statistics to test trends across each product/location combination, identifying the appropriate classification for items that contain seasonality, irregular or lumpy demand, new activity, declining sales, and many other observations. A higher degree of confidence in the planning strategy and the manner in which it’s being applied. • Significant reduction in the time and effort dedicated to forecasting and managing supply plans, allowing the business to focus on what matters most; – not the statistics and especially not administering system parameters.

The more inventory you have in stock, the less working capital you have available. Further, the higher the risk that that inventory will become dead stock, meaning it will never contribute to your bottom line at all. Utilizing a structured approach to your working capital management will help ensure it is well optimized today, and in the future. Take our 10 question quiz to determine if your supply chain department is effectively managing working capital, and where there are areas for improvement.