Inventory Optimization Archives

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Design, Operating and Situational Inventory Trade-Offs

5 February 2019

Gartner analyst Paul Lord has developed a framework to better understand inventory trade-offs by categorizing those decisions according to the objectives they are meant to achieve: structural, operational and situational. Many companies struggle with decisions such as “How many days of[...]

5 February 2019

Why Probabilistic Forecasting Is Better for Inventory Optimization

Last month we published a primer on probabilistic forecasting, an alternative to deterministic or ‘single number’ forecasting. In this post we’ll explore how probabilistic forecasting not only creates better forecasts, but also improves inventory optimization by improving the stock levels[...]

5 February 2019

Balancing Service Levels and Supply Chain Costs

Editor’s Note: Last year ToolsGroup became Microsoft’s partner for Multi-echelon Inventory Optimization (MEIO) in Industrial accounts. We collaborated on a blog about how to solve the often difficult challenge of balancing service levels with supply chain costs. You can see[...]

5 February 2019

How Manufacturers Optimize Their Inventories

Editor’s Note: Microsoft’s Colin Masson, Global Industry Director of Manufacturing Solutions, sat down with me to discuss how manufacturers optimize their inventories. You can see a longer version of the interview here on the Microsoft website or my slightly abridged version below.[...]

5 February 2019

Multi-echelon inventory optimization vs inventory optimization

Editor’s Note: Last year ToolsGroup became Microsoft’s partner for Multi-echelon Inventory Optimization (MEIO) in Industrial accounts. Microsoft and I collaborated on a blog introducing the basic concept of MEIO, comparing it with Inventory Optimization. You can see Microsoft's version here on their[...]

5 February 2019

Still Managing Your Inventory with Spreadsheets?

Most companies are still trying to use Excel to optimize their inventories. Supply Chain Insights’ 2018 Inventory Optimization Technologies Study suggests the number may be as high as 75%. These companies struggle to meet service level requirements while respecting financial impacts, and[...]

5 February 2019

Segmenting Your Inventory by Gross Margin and Demand Variability

Gartner Research analyst Paul Lord has developed a thought-provoking approach (shown in the below diagram) for tailoring supply and inventory tactics to different inventory segments based on gross margin and demand variability. Traditional ABC inventory models segment inventory into A,[...]

5 February 2019

Four Ways Inventory Optimization Can Address Tighter Supply Constraints

As the (U.S.) economic expansion enters its ninth year, supply constraints are showing up in supply chains. The Wall Street Journal recently advised “In the battle for economic supremacy, investors should quickly be realizing it’s increasingly about supply, not demand.”[...]

5 February 2019

Transforming the Manufacturing Supply Chain with MEIO

Editor’s Note: Last year ToolsGroup became Microsoft’s partner for Multi-echelon Inventory Optimization (MEIO) in Industrial accounts. Microsoft’s Bill Moffett and I collaborated on an introductory blog on MEIO for manufacturing businesses. You can see Bill’s version here on the Microsoft website and[...]

5 February 2019

Three Key Themes in the New Inventory Optimization Vendor Ranking

The 2018 Nucleus Research Inventory Optimization (IO) Value Matrix Report has just been released, and analyst Seth Lippincott identifies the latest technology trends, ranks top inventory optimization solution providers, and describes the strengths and weaknesses of each vendor. Nucleus positioned[...]

5 February 2019

Segmenting Your Spare Parts Supply Chain for 3D Printing

From warehouse robots (very real) to equipment that you control with your mind (in the labs), new technologies appear so regularly that it can be hard to separate real from science fiction. But in the spare parts business, 3D printing has become “here and[...]

5 February 2019

Three New Ways Retailers Can Improve Inventory Performance

Many retailers consider competing against Amazon their biggest challenge. While the impact of Amazon is real, it is only a thread in the larger retail competition tapestry. Amazon offers breadth, but brick and mortars offers “now”, and a tactile consumer shopping[...]

Sales & Operations Planning Software S&OP provides the critical link between inventory, customer service and business performance by enabling cross-functional planning and bridging the gap between strategic planning and operational execution.

Promotions Planning Software Promotions Planning gives cross-functional teams the visibility to synchronize demand shaping campaigns and promotions with supply chain operations ensuring that inventory is in the right place to meet demand on a daily basis, right down to the store level.

Production Planning Software Production Planning provides unparalleled visibility, insight and control of the entire production lifecycle to improve efficiency and quality control, and service demand.

Inventory Optimization Software Inventory Optimization factors in multiple planning variables and probabilities to generate an optimal multi-echelon inventory plan for every item in a portfolio to achieve target service levels.

Allocation and Replenishment Software Allocation and Replenishment automatically calculates optimal inventory levels for both existing and new items to create a phased, time-series plan that achieves target service levels even in the face of demand variability and distribution complexity.

Demand Planning & Sensing Software Demand Planning & Sensing automates the creation of demand plans using machine learning and by incorporating detailed short-term demand signals and demand collaboration, it reduces forecast error and optimally deploys inventory.

Planning as a Service Planning-as-a-Service provides business-focused, technology enabled resources to help customers quickly achieve value from their SO99+ implementation. It accelerates time-to-value over a traditional implement and learn approach.