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Inventory Optimization Software

Take a different approach to inventory planning to meet service levels while minimizing inventory

Today’s consumers demand more options and greater variety. Trends change quickly. The result is that companies are carrying more slow-moving items with irregular, intermittent demand patterns. Traditional ABC inventory planning, developed in the 1950s, just doesn’t work in this world. Our inventory optimization software uses self-adaptive demand and inventory models to automatically define the optimal mix of inventory across the multi-echelon supply chain to achieve aggressive service level targets while minimizing inventory and reducing costs.

Decode demand uncertainty to reduce inventory risk

Optimize inventory for uncertain demand - Image

Optimize inventory for uncertain demand

When managing slow-moving and intermittent demand items, ToolsGroup is incomparably better than other solutions. Our proprietary analytical relationships between inventory and customer service levels have proven to be highly reliable, even for very slow moving and intermittent demand items. This allows the system to optimize even very large assortments, including products in the “long tail”, balancing inventories across different locations and different levels in the bill of materials (BOM).


Meet high service levels while minimizing inventory - Image

Meet high service levels while minimizing inventory

Instead of creating a “one-size-fits-all” inventory mix within item groups defined by rudimentary classification criteria, our inventory optimization approach differentiates service and inventory targets across products, bill-of-materials levels, and distribution network locations to most efficiently meet desired customer service level objectives.


Free up working capital - Image

Free up working capital

By applying advanced modeling and artificial intelligence (AI) to optimize inventory at the individual SKU and location level, ToolsGroup inventory planning solution typically reduces overall inventory levels by 10-30%. Less money tied up in inventory means you have more cash available for better uses.


My only regret now is not upgrading sooner! I'm immensely proud to be passing on a highly efficient, productive spare parts operation that provides exceptional service and is ready for the future." Shalom Asayag,
Service and Aftermarket Director

  • Inventory levels are 20-30% lower without compromising their 96-97% service levels (well above industry benchmark)
  • Rush air shipments slashed by a third
  • 1.5 million euros in first-year savings attributed to inventory reductions alone
  • Further reductions in inventory write-offs and providing complementary rental cars
  • Significantly raised planning productivity (from two full-time to one part-time)
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ToolsGroup has proven to be an ideal partner in helping O2 plan a supply chain that can respond to changes in demand." David Flaxten,
Demand Planning Manager

  • Improved forecast accuracy by 10%
  • Raised handset availability service levels to 97% in the warehouse and 96% in retail stores
  • Decreased days of stock by nearly 30%
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Inventory optimization software features

01

Inventory modeling

Our unique inventory modeling technology eliminates the gross approximations of traditional inventory management, creating very reliable relationships between average inventory and service levels for each SKU and location. This allows our inventory optimization solution to define the optimal inventory mix across your products and network to meet service targets at the lowest cost. And it helps you to be ready for anything.

02

Service-driven optimization

Unlike ABC inventory planning, which has an operational perspective, service-driven inventory optimization centers on sales, marketing, and customers. It uses categories called “service classes” that sales and marketing people can easily relate to. Then it optimizes every SKU-Location against a target service level for each service class. The end result is an aggregated service class goal with the lowest possible stock investment.

03

Multi-echelon inventory optimization (MEIO)

To truly serve the end customer, the entire network–from raw materials suppliers and factories through distribution centers and wholesalers–needs the right items in stock. Our MEIO solution suggests optimal inventory levels at each stage of the supply chain, simultaneously balancing across multiple echelons, locations, and different Bill-of-Material (BOM) levels. It finds the most globally efficient balance between upstream and downstream inventory while optimizing safety stocks. It supports centralized demand planning, lowers costs across the supply chain, and streamlines operations.

04

Probabilistic forecasting

Our probabilistic forecast provides the foundation for inventory planning, and helps you manage the risk that comes from demand volatility by providing a range of possible values with their probability of occurrence. Advanced machine learning enhances traditional demand forecasts by modeling internal sources of noise and incorporating the effect of external data.

01

Inventory modeling

Our unique inventory modeling technology eliminates the gross approximations of traditional inventory management, creating very reliable relationships between average inventory and service levels for each SKU and location. This allows our inventory optimization solution to define the optimal inventory mix across your products and network to meet service targets at the lowest cost. And it helps you to be ready for anything.

02

Service-driven optimization

Unlike ABC inventory planning, which has an operational perspective, service-driven inventory optimization centers on sales, marketing, and customers. It uses categories called “service classes” that sales and marketing people can easily relate to. Then it optimizes every SKU-Location against a target service level for each service class. The end result is an aggregated service class goal with the lowest possible stock investment.

03

Multi-echelon inventory optimization (MEIO)

To truly serve the end customer, the entire network–from raw materials suppliers and factories through distribution centers and wholesalers–needs the right items in stock. Our MEIO solution suggests optimal inventory levels at each stage of the supply chain, simultaneously balancing across multiple echelons, locations, and different Bill-of-Material (BOM) levels. It finds the most globally efficient balance between upstream and downstream inventory while optimizing safety stocks. It supports centralized demand planning, lowers costs across the supply chain, and streamlines operations.

04

Probabilistic forecasting

Our probabilistic forecast provides the foundation for inventory planning, and helps you manage the risk that comes from demand volatility by providing a range of possible values with their probability of occurrence. Advanced machine learning enhances traditional demand forecasts by modeling internal sources of noise and incorporating the effect of external data.

Our solution experts are available to discuss your business goals and technology needs.

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