The Smart Forecaster

 Pursuing best practices in demand planning,

forecasting and inventory optimization

Share, develop, and manage consensus demand plans to ensure inventory policy matches business strategy.

Smart Inventory Optimization (SIO) creates planning scenarios. SIO starts with a “Live” scenario that shows where you are now. Various team members can create their own scenarios, perhaps dividing the work by product line or sales territory. One decision maker can then merge these scenarios into a consensus plan that becomes the “Goal” scenario, which drives the ERP system’s replenishment planning.

Leave a Comment

Related Posts

Head to Head: Which Service Parts Inventory Policy is Best?

Head to Head: Which Service Parts Inventory Policy is Best?

Our customers have usually settled into one way to manage their service parts inventory. The professor in me would like to think that the chosen inventory policy was a reasoned choice among considered alternatives, but more likely it just sort of happened. Maybe the inventory honcho from long ago had a favorite and that choice stuck. Maybe somebody used an EAM or ERP system that offered only one choice. Perhaps there were some guesses made, based on the conditions at the time.

Leveraging ERP Planning BOMs with Smart IP&O to Forecast the Unforecastable

Leveraging ERP Planning BOMs with Smart IP&O to Forecast the Unforecastable

In a highly configurable manufacturing environment, forecasting finished goods can become a complex and daunting task. The number of possible finished products will skyrocket when many components are interchangeable. A traditional MRP would force us to forecast every single finished product which can be unrealistic or even impossible. Several leading ERP solutions introduce the concept of the “Planning BOM”, which allows the use of forecasts at a higher level in the manufacturing process. In this article, we will discuss this functionality in ERP, and how you can take advantage of it with Smart Inventory Planning and Optimization (Smart IP&O) to get ahead of your demand in the face of this complexity.

Finding Your Spot on the Tradeoff Curve

Finding Your Spot on the Tradeoff Curve

Managing inventory, like managing anything, involves balancing competing priorities. Do you want a lean inventory? Yes! Do you want to be able to say “It’s in stock” when a customer wants to buy something? Yes!
But can you have it both ways? Only to a degree. If you lean into leaning your inventory too aggressively, you risk stockouts. If you stamp out stockouts, you create inventory bloat. You are forced to find a satisfactory balance between the two competing goals of lean inventory and high item availability.

Recent Posts

  • The Objectives in ForecastingThe Objectives in Forecasting
    A forecast is a prediction about the value of a time series variable at some time in the future. For instance, one might want to estimate next month’s sales or demand for a product item. A time series is a sequence of numbers recorded at equally spaced time intervals; for example, unit sales recorded every month. The objectives you pursue when you forecast depend on the nature of your job and your business. Every forecast is uncertain; in fact, there is a range of possible values for any variable you forecast. Values near the middle of this range have a higher likelihood of actually occurring, while values at the extremes of the range are less likely to occur. […]
  • Smart Software Partnership with Sage for Inventory Optimization and Demand ForecastingSmart Software Announces Strategic Partnership with Sage for Inventory Optimization and Demand Forecasting
    Smart Software announces today their strategic partnership with Sage. This collaboration brings Smart IP&O (Inventory Planning and Optimization) into the latest cloud and on-premises versions of Sage X3, Sage 300, and Sage 100. […]
  • Head to Head Which Service Parts Inventory Policy is Best SoftwareHead to Head: Which Service Parts Inventory Policy is Best?
    Our customers have usually settled into one way to manage their service parts inventory. The professor in me would like to think that the chosen inventory policy was a reasoned choice among considered alternatives, but more likely it just sort of happened. Maybe the inventory honcho from long ago had a favorite and that choice stuck. Maybe somebody used an EAM or ERP system that offered only one choice. Perhaps there were some guesses made, based on the conditions at the time. […]
  • The Forecasting Process For Decision-MakersThe Forecasting Process for Decision-Makers
    In almost every business and industry, decision-makers need reliable forecasts of critical variables, such as sales, revenues, product demand, inventory levels, market share, expenses, and industry trends.Many kinds of people make these forecasts. Some are sophisticated technical analysts such as business economists and statisticians. Many others regard forecasting as an important part of their overall work: general managers, production planners, inventory control specialists, financial analysts, strategic planners, market researchers, and product and sales managers. Still, others seldom think of themselves as forecasters but often have to make forecasts on an intuitive, judgmental basis. […]
  • Success Story: Procon Pumps Uses Smart Demand Planner to Keep Business FlowingProcon Pumps Uses Smart Demand Planner to Keep Business Flowing
    Smart platform’s advanced analytics, and smooth integration with Procon’s ERP system led to accurate forecasts, and optimal inventory levels. […]

    Inventory Optimization for Manufacturers, Distributors, and MRO

    • Spare-parts-demand-forecasting-a-different-perspective-for-planning-service-partsThe Forecast Matters, but Maybe Not the Way You Think
      True 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. […]
    • Whyt MRO Businesses Should Care about Excess InventoryWhy MRO Businesses Should Care About Excess Inventory
      Do 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 PartsTop Differences Between Inventory Planning for Finished Goods and for MRO and Spare Parts
      In 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. […]
    • Centering Act Spare Parts Timing Pricing and ReliabilityCentering Act: Spare Parts Timing, Pricing, and Reliability
      In this article, we'll walk you through the process of crafting a spare parts inventory plan that prioritizes availability metrics such as service levels and fill rates while ensuring cost efficiency. We'll focus on an approach to inventory planning called Service Level-Driven Inventory Optimization. Next, we'll discuss how to determine what parts you should include in your inventory and those that might not be necessary. Lastly, we'll explore ways to enhance your service-level-driven inventory plan consistently. […]