Inventory Optimization Software

Take a different approach to inventory planning to meet service levels while reducing 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. ToolsGroup Service Optimizer 99+ (SO99+) 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

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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 reducing inventory - Image

Meet high service levels while reducing 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.

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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.

Inventory optimization software features


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.


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.


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.


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

Related Resources


Optimizing Inventory Is About Improving Service While Lowering Inventory. Wait, What?


How to Optimize Inventory in the Digital Age


Inventory Optimization