Powerfully Simple Inventory Optimization

For companies looking to step up from ABC classification or other simple inventory planning tools such as days demand coverage, ToolsGroup’s inventory optimization incorporates best practices, outstanding technology, and the ability to handle slow movers and long tail demand. It also expertly determines the inventory to achieve even very high customer service levels (up to 99+%) with less inventory. 

Single-node inventory planning doesn’t address a network-based problem, leading to ineffective inventory policies in an end-to-end supply chain.

Rather than calculating each SKU inventory target independently, ToolsGroup’s multi-echelon inventory policy approach performs an intelligent simultaneous global optimization over a large assortment of SKU-Locations, considering both other SKUs and stocking policies up and down the supply chain. 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 approach, this inventory modelling is highly automatic with extremely low cost of ownership. Yet it routinely generates million dollar ROIs via increased customer service levels, reduced stock-outs and improved inventory turns.

Whether delivered either as a low cost cloud-based inventory target setting service or via hosted or on-site software, it simultaneously solves up to three inventory optimization problems:

• Multi-echelon - finding the most globally efficient balance between upstream and downstream inventory
• Service Level 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.