nventory optimization aims to ensure the required service level and part availability with the least possible working capital.
What is Problem?
As companies increase their product variety and sales channels, they start to hold more inventory to meet demand. The development of e-commerce and the increasing focus of competition on delivering products to customers faster, requires stocks to circulate in more locations spread over geography. All of these factors increase operational challenges. If the situation is not managed well, it leads to the swelling of inventory and the tying up of capital that could be allocated to more profitable investments. Companies have to make very good decisions about how much inventory to hold in which location throughout the entire supply chain.
What is Solution?
Dijitalis enables you to accurately categorize and analyze demand by tailoring analytical solutions to your organization. By simulating demand and inventory movements throughout the supply chain, you can determine inventory policies that are aligned with the real dynamics of operations. As a result of this process, you keep the right quality and level of inventory at the right points. In particular, it is possible to quickly achieve the following benefits;
- You start to see in advance how strategic and managerial decisions will affect inventory in different items such as cycle stock, safety stock, forward stocking stock, and on-the-way stock.
- You create an inventory planning process that will respond quickly to any scenario and will be repeatable within the organization.
- You determine the right safety stock quantities that will meet customer expectations and company goals, and understand the impact on service level.