What is to blame for having too much of the stuff you don’t need and not enough of the stuff you do need? Demand and supply variability are often blamed. These problems are significant and seems impossible to overcome leaving many organizations to simply accept misallocated stock as a cost of doing business. However, the real problem it isn’t simply late supplier deliveries and unpredictable demand. These are supply chain planning “facts of life” and it’s how your company addresses them that counts. Watch Greg Hartunian’s vlog to hear his thoughts and what you can do about it.
Smart Inventory Planning and Optimization automatically calculates the stocking policy that yields the best return for your business considering holding costs, ordering costs, and stock outs. To see it in action, register below to watch a 12 minute demonstration.
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Irregular Operations
This blog is about “irregular operations.” Smart Software is in the process of adapting our products to help you cope with your own irregular ops. This is a preview.
The Cost of Spreadsheet Planning
Companies that depend on spreadsheets for demand planning, forecasting, and inventory management are often constrained by the spreadsheet’s inherent limitations. This post examines the drawbacks of traditional inventory management approaches caused by spreadsheets and their associated costs, contrasting these with the significant benefits gained from embracing state-of-the-art planning technologies.
Finding Your Spot on the Inventory Tradeoff Curve
This video blog holds essential insights for those working with the complexities of inventory management. The session focuses on striking the right balance within the inventory tradeoff curve, inviting viewers to understand the deep-seated importance of this equilibrium.
Recent Posts
Learning from Inventory ModelsIn this video blog, the spotlight is on a critical aspect of inventory management: the analysis and interpretation of inventory data. The focus is specifically on a dataset from a public transit agency detailing spare parts for buses. […]
Irregular OperationsThis blog is about “irregular operations.” Smart Software is in the process of adapting our products to help you cope with your own irregular ops. This is a preview. […]
Smart Software to Present at Epicor Insights 2024Smart Software will present at this year's Epicor Insights event in Nashville. If you plan to attend this year, please join us at booth #13 or #501, and learn more about Epicor Smart Inventory Planning and Optimization. . […]
Looking for Trouble in Your Inventory DataIn this video blog, the spotlight is on a critical aspect of inventory management: the analysis and interpretation of inventory data. The focus is specifically on a dataset from a public transit agency detailing spare parts for buses. […]
Big Ass Fans Turns to Smart Software as Demand Heats UpBig Ass Fans is the best-selling big fan manufacturer in the world, delivering comfort to spaces where comfort seems impossible. BAF had a problem: how to reliably plan production to meet demand. BAF was experiencing a gap between bookings forecasts vs. shipments, and this was impacting revenue and customer satisfaction BAF turned to Smart Software for help. […]
Inventory Optimization for Manufacturers, Distributors, and MRO
Why MRO Businesses Need Add-on Service Parts Planning & Inventory SoftwareMRO organizations exist in a wide range of industries, including public transit, electrical utilities, wastewater, hydro power, aviation, and mining. To get their work done, MRO professionals use Enterprise Asset Management (EAM) and Enterprise Resource Planning (ERP) systems. These systems are designed to do a lot of jobs. Given their features, cost, and extensive implementation requirements, there is an assumption that EAM and ERP systems can do it all. In this post, we summarize the need for add-on software that addresses specialized analytics for inventory optimization, forecasting, and service parts planning. […]
The Forecast Matters, but Maybe Not the Way You ThinkTrue or false: The forecast doesn't matter to spare parts inventory management. At first glance, this statement seems obviously false. After all, forecasts are crucial for planning stock levels, right? It depends on what you mean by a “forecast”. If you mean an old-school single-number forecast (“demand for item CX218b will be 3 units next week and 6 units the week after”), then no. If you broaden the meaning of forecast to include a probability distribution taking account of uncertainties in both demand and supply, then yes. […]
Why MRO Businesses Should Care About Excess InventoryDo MRO companies genuinely prioritize reducing excess spare parts inventory? From an organizational standpoint, our experience suggests not necessarily. Boardroom discussions typically revolve around expanding fleets, acquiring new customers, meeting service level agreements (SLAs), modernizing infrastructure, and maximizing uptime. In industries where assets supported by spare parts cost hundreds of millions or generate significant revenue (e.g., mining or oil & gas), the value of the inventory just doesn’t raise any eyebrows, and organizations tend to overlook massive amounts of excessive inventory. […]
Top Differences Between Inventory Planning for Finished Goods and for MRO and Spare PartsIn today’s competitive business landscape, companies are constantly seeking ways to improve their operational efficiency and drive increased revenue. Optimizing service parts management is an often-overlooked aspect that can have a significant financial impact. Companies can improve overall efficiency and generate significant financial returns by effectively managing spare parts inventory. This article will explore the economic implications of optimized service parts management and how investing in Inventory Optimization and Demand Planning Software can provide a competitive advantage. […]