Inventory Optimization

Unlike common inventory planning software, we don’t offer just ABC classification or some form of rudimentary inventory planning. We offer real inventory optimization.

Rather than calculating each SKU inventory target independently, inventory optimization performs an intelligent simultaneous global optimization over a large assortment of SKU-Locations.  It statistically models both demand and replenishment, reliably and analytically describing the relationship between inventory and customer service, even across a wide range of parameters. It generates robust inventory targets that truly deliver customer service level targets.

Employing our “Powerfully Simple” philosophy, this inventory modeling is highly automatic with extremely low cost of ownership. Yet it allows you to achieve very high customer service levels (up to 99+%) with less inventory. It routinely generates million dollar ROIs via increased customer service levels, reduced stockouts and improved inventory turns.

Our Inventory Optimization software delivers these improvements across multi-echelon networks and simultaneously solves up to three inventory optimization problems: 

•    Multi-echelon - finding the most globally efficient balance between upstream and downstream inventory
•    Mix optimization - Rather than assign the same "one size fits all" service level target to all SKUs in a group, it assigns different service targets to each individual SKU-Location.
•    Simultaneous optimizing safety stocks and cycle stocks

For a complete description of our Inventory Optimization solution and our customer experience, please contact the ToolsGroup office nearest you.