I can’t imagine being an inventory planner in spare parts, distribution, or manufacturing and having to create safety stock levels, reorder points, and order suggestions without using key performance predictions of service levels, fill rates, and inventory costs:
Smart’s Inventory Optimization solution generates out-of-the-box key performance predictions that dynamically simulate how your current stocking policies will perform against possible future demands. It reports on how often you’ll stock out, the size of the stockouts, the value of your inventory, holding costs, and more. It lets you proactively identify problems before they occur so you can take corrective action in the short term. You can create what-if scenarios by setting targeted service levels and modifying lead times so you an see the predicted impact of these changes before committing to it.
- You can see if a proposed move from the current service level of 90% to a targeted service level of 97% is financially advantageous
- You can automatically identify if a different service level target is even more profitable to your business that the proposed target.
- You can see exactly how much you’ll need to increase your reorder points to accommodate a longer lead time.
If you aren’t equipping planners with the right tools, they’ll be forced to set stocking policies, safety stock levels, and create demand forecasts in Excel or with outdated ERP functionality. Not knowing how policies are predicted to perform will leave your company ill equipped to properly allocate inventory. Contact us today to learn how we can help!