Smart Software and Optimum Consulting Announce Strategic Partnership

Belmont, Mass., May 2023 – Smart Software, Inventory optimization, demand planning, and forecasting software leader, and Optimum Consulting, today announced their partnership to address the supply chain planning needs of the Manufacturing, Wholesale, and Retail industries in Australia and New Zealand. Optimum Consulting will sell and deploy Smart’s next-generation cloud platform, Smart Inventory Planning & Optimization (Smart IP&O™), as an integral part of its Sales, Operations, and Inventory Planning (SIOP) practice.

Smart Software is a Microsoft Co-sell-ready partner and, over the years, has created a flawless connector to integrate tools with Microsoft Dynamics. The integration brings the cloud-based Smart IP&O (Inventory Planning and Optimization) into the latest version of Microsoft Dynamic solution. By seamlessly integrating strategic planning in Smart IP&O with operational execution in Dynamics, business users can continuously predict, respond, and plan more effectively in today’s uncertain business environment. Smart’s unique approach to planning intermittent demand is especially impactful for public utilities and transit agencies, given the prevalence of spare parts with highly sporadic, seemingly unforecastable usage.

Optimum Consulting is a Microsoft Dynamics 365 Solutions Partner who is totally committed to the Manufacturing, Wholesale, and Retail industries in Australia and New Zealand. The Team’s experts help clients build agile operating models, drive business process improvements, and turn customers into advocates by delivering end-to-end Microsoft Dynamics 365, Microsoft Power Apps, Business Intelligence & Analytics, and Managed Services Solutions.

“Smart Software helps our customers by delivering insightful business analytics for inventory modeling and forecasting that drive ordering and replenishment in the latest version of Microsoft Dynamics. With Smart IP&O, our customers gain a means to shape inventory strategy to align with the business objectives while empowering their planning teams to reduce inventory and improve service,” says  Matthew Lingard, CEO at  Optimum Consulting

“Maximizing the benefits our solutions can provide requires the expertise and perspective to consider requirements, set goals, and to develop the supporting business process that ensures adoption and benefits. These are the qualities that The New Partner brings to the table and we look forward to our joint success,”…. says Greg Hartunian, President, and CEO at Smart Software

 

About Smart Software, Inc.

Founded in 1981, Smart Software, Inc. is a leader in providing businesses with enterprise-wide demand forecasting, planning and inventory optimization solutions.  Smart Software’s demand forecasting and inventory optimization solutions have helped thousands of users worldwide, including customers at mid-market enterprises and Fortune 500 companies, such as, Mitsubishi, Siemens, Disney, FedEx, MARS, and The Home Depot.  Smart Inventory Planning & Optimization gives demand planners the tools to handle sales seasonality, promotions, new and aging products, multi-dimensional hierarchies, and intermittently demanded service parts and capital goods items.  It also provides inventory managers with accurate estimates of the optimal inventory and safety stock required to meet future orders and achieve desired service levels.  Smart Software is headquartered in Belmont, Massachusetts and can be found on the World Wide Web at www.smartcorp.com.

 

About the Partner, Inc.

Optimum Consulting is a Microsoft Dynamics 365 Solutions Partner who is totally committed to the Manufacturing, Wholesale, and Retail industries in Australia and New Zealand. The Team’s experts help clients build agile operating models, drive business process improvements, and turn customers into advocates by delivering end-to-end Microsoft Dynamics 365, Microsoft Power Apps, Business Intelligence & Analytics, and Managed Services Solutions. The Team’s functional expertise covers eCommerce, Retail, Pricing & Promotions, Customer Data Platform, Customer Journey Mapping, Customer Experience, Forecasting & Master Planning, Advanced Warehouse, and Production Planning.  Optimum Consulting’s technical capabilities span across Commerce Design and Development, Commerce Server, Point of Sale (POS) Development, Finance and Supply Chain Management (SCM) Development, Artificial Intelligence (AI) and Machine Learning (ML), Data Warehouse and Data Lake, and related Microsoft Cloud solutions.

 

 


For more information, please contact Smart Software, Inc., Four Hill Road, Belmont, MA 02478.
Phone: 1-800-SMART-99 (800-762-7899); FAX: 1-617-489-2748; E-mail: info@smartcorp.com

 

 

Service Level Driven Planning for Service Parts Businesses in the Dynamics 365 space

Service-Level-Driven Service Parts Planning for Microsoft Dynamics BC or F&SC is a four-step process that extends beyond simplified forecasting and rule-of-thumb safety stocks. It provides service parts planners with data-driven, risk-adjusted decision support.

 

The math to determine this level of planning simply does not exist in D365 functionality.  It requires math and AI that passes thousands of times through calculations for each part and part center (locations).  Math and AI like this are unique to Smart.  To understand more, please read on. 

 

Step 1. Ensure that all stakeholders agree on the metrics that matter. 

All participants in the service parts inventory planning process must agree on the definitions and what metrics matter most to the organization. Service Levels detail the percentage of time you can completely satisfy required usage without stocking out. Fill Rates detail the percentage of the requested usage that is immediately filled from stock. (To learn more about the differences between service levels and fill rate, watch this 4-minute lesson here.) Availability details the percentage of active spare parts with an on-hand inventory of at least one unit. Holding costs are the annualized costs of holding stock accounting for obsolescence, taxes, interest, warehousing, and other expenses. Shortage costs are the cost of running out of stock, including vehicle/equipment downtime, expedites, lost sales, and more. Ordering costs are the costs associated with placing and receiving replenishment orders.

 

Step 2. Benchmark historical and predicted current service level performance.

All participants in the service parts inventory planning process must hold a common understanding of predicted future service levels, fill rates, and costs and their implications for your service parts operations. It is critical to measure both historical Key Performance Indicators (KPIs) and their predictive equivalents, Key Performance Predictions (KPPs).  Leveraging modern software, you can benchmark past performance and leverage probabilistic forecasting methods to simulate future performance.  Virtually every Demand Planning solution stops here.  Smart goes further by stress-testing your current inventory stocking policies against all plausible future demand scenarios.  It is these thousands of calculations that build our KPPs.  The accuracy of this improves D365’s ability to balance the costs of holding too much with the costs of not having enough. You will know ahead of time how current and proposed stocking policies are likely to perform.

 

Step 3. Agree on targeted service levels for each spare part and take proactive corrective action when targets are predicted to miss. 

Parts planners, supply chain leadership, and the mechanical/maintenance teams should agree on the desired service level targets with a full understanding of the tradeoffs between stockout risk and inventory cost.  A call out here is that our D365 customers are almost always stunned by the stocking levels difference between 100% and 99.5% availability.   With the logic for nearly 10,000 scenarios that half a percent outage is almost never hit.   You achieve full stocking policy with much lower costs.   You find the parts that are understocked and correct those.  The balancing point is often a 7-12% reduction in inventory costs. 

This leveraging of what-if scenarios in our parts planning software gives management and buyers the ability to easily compare alternative stocking policies and identify those that best meet business objectives.  For some parts, a small stock out is okay.  For others, we need that 99.5% parts availability.  Once these limits are agreed upon, we use the Power of D365 to optimize inventory using D365 core ERP as it should be.   The planning is automatically uploaded to engage Dynamics with modified reorder points, safety stock levels, and/or Min/Max parameters.  This supports a single Enterprise center point, and people are not using multiple systems for their daily parts management and purchasing.

 

Step 4. Make it so and keep it so. 

Empower the planning team with the knowledge and tools it needs to ensure that you strike agreed-upon balance between service levels and costs.  This is critical and important.  Using Dynamics F&SC or BC to execute your ERP transactions is also important.  These two Dynamics ERPs have the highest level of new ERP growth on the planet.  Using them as they are intended to be used makes sense.   Filling the white space for the math and AI calculations for Maintenance and Parts management also makes sense.  This requires a more complex and targeted solution to help.  Smart Software Inventory Optimization for EAM and Dynamics ERPs holds the answer.    

Remember: Recalibration of your service parts inventory policy is preventive maintenance against both stockouts and excess stock.  It helps costs, frees capital for other uses, and supports best practices for your team. 

 

Extend Microsoft 365 F&SC and AX with Smart IP&O

To see a recording of the Microsoft Dynamics Communities Webinar showcasing Smart IP&O, register here:

https://smartcorp.com/inventory-planning-with-microsoft-365-fsc-and-ax/

 

 

 

 

Extend Microsoft 365 F&SC and AX with Smart IP&O

Microsoft Dynamics 365 F&SC and AX can manage replenishment by suggesting what to order and when via reorder point-based inventory policies.  A challenge that customers face is that efforts to maintain these levels are very detailed oriented and that the ERP system requires that the user manually specify these reorder points and/or forecasts.  As an alternative, many organizations end up generating inventory policies by hand using Excel spreadsheets or using other ad hoc approaches.

These methods are time-consuming and both likely result in some level of inaccuracy.  As a result, the organization will end up with excess inventory, unnecessary shortages, and a general mistrust of their software systems. In this article, we will review the inventory ordering functionality in AX / D365 F&SC, explain its limitations, and summarize how Smart Inventory Planning & Optimization can help improve a company’s cash position.   This is accomplished by reduced inventory, minimized and controlled stockouts.   Use of Smart Software delivers predictive functionality that is missing in Dynamics 365.

Microsoft Dynamics 365 F&SC and AX Replenishment Policies

In the inventory management module of AX and F&SC, users can manually enter planning parameters for every stock item. These parameters include reorder points, safety stock lead times, safety stock quantities, reorder cycles, and order modifiers such as supplier imposed minimum and maximum order quantities and order multiples. Once entered, the ERP system will reconcile incoming supply, current on hand, outgoing demand, and the user defined forecasts and stocking policies to net out the supply plan or order schedule (i.e., what to order and when).

There are 4 replenishment policy choices in F&SC and AX:  Fixed Reorder Quantity, Maximum Quantity, Lot-For-Lot and Customer Order Driven.

  • Fixed Reorder Quantity and Max are reorder point-based replenishment methods. Both suggest orders when on hand inventory hits the reorder point. With fixed ROQ, the order size is specified and will not vary until changed. With Max, order sizes will vary based on stock position at time of order with orders being placed up to the Max.
  • Lot-for Lot is a forecasted based replenishment method that pools total demand forecasted over a user defined time frame (the “lot accumulation period”) and generates an order suggestion totaling the forecasted quantity. So, if your total forecasted demand is 100 units per month and the lot accumulation period is 3 months, then your order suggestion would equal 300 units.
  • Order Driven is a make to order based replenishment method. It doesn’t utilize reorder points or forecasts. Think of it as a “sell one, buy one” logic that only places orders after demand is entered.

 

Limitations

Every one of F&SC / AX replenishment settings must be entered manually or imported through custom uploads created by customers.  There simply isn’t any way for users to natively generate any inputs (especially not optimal ones). The lack of credible functionality for unit level forecasting and inventory optimization within the ERP system is why so many AX and F&SC users are forced to rely on spreadsheets for planning and then manually set the parameters the ERP needs.  In reality, most planners end up manually set demand forecasts and reordering.

And when they can use spread sheets, they often rely on wide rule of thumb methods that results in using simplified statistical models.  Once calculated in the spread sheet these must be loaded into F&SC/AX.  They are often either loaded via cumbersome file imports or manually entered.   Because of the time and effort, it takes to build these, companies do not frequently update these numbers.

Once these are set in place, organizations tend to employ a reactive approach to changes.  The only time a buyer/planner reviews inventory policy is annually or at the time of purchases or manufacturing.   Some firms will also react after encountering problems with inventory levels being short (or too high).  Managing this in AX and F&AS requires manual interrogation to review history, calculate forecasts, assess buffer positions, and to recalibrate.

Microsoft recognizes these constraints in their core ERPs and understands the significant challenges to customers.  In response Microsoft has positioned forecasting under their AI Azure stack.  This method is outside of the core ERPs.  It is offered as a tool set for Data Scientists to use in defining custom complex statistics and calculations as a company wishes.  This is in addition to some basic simple calculations as a starting point are currently in their start up phases of development.  While this may hold long term gains, currently this method means customers start from near scratch and define what Microsoft currently called ‘experiments’ to gauge demand planning.

The bottom line is that customers face large challenges in getting the Dynamics stack itself to help solve these problems.  The result is for CFOs to have less cash available for what they need and for Sales Execs to have sales opportunities unfilled and a potential loss of sales because the firm can’t ship the goods the customer wants.

 

Get Smarter

Wouldn’t it be better to simply leverage a best of breed add-on for demand planning; and a best of breed inventory optimization solution to manage and balance costs and fulfilment levels?  Wouldn’t it be better to be able to do this on a daily or weekly basis to make your decisions closest to the need, preserving cash while meeting sales demand?

Imagine having a bidirectional integration with AX and F&AS so this all operates easily and quickly.   One where:

  • you could automatically recalibrate policies in frequent planning cycles using field proven, cutting-edge statistical models,
  • you would be able to calculate demand forecasts that account for seasonality, trend, and cyclical patterns,
  • You would automatically leverage optimization methods that prescribe the most profitable stocking policies and service levels that consider the real costs of carrying inventory and stock outages, giving you a full economic picture,
  • You could free up cash for use within the company and manage your inventory levels to improve order fulfillment at the same time as you free this cash.
  • you would have safety stocks and inventory levels that would account for demand and supply variability, business conditions, and priorities,
  • you’d be able to target specific service levels by groups of products, customers, warehouses, or any other dimension you selected,
  • you increase overall company profit and balance sheet health.

 

Extend Microsoft 365 F&SC and AX with Smart IP&O

To see a recording of the Microsoft Dynamics Communities Webinar showcasing Smart IP&O, register here:

https://smartcorp.com/inventory-planning-with-microsoft-365-fsc-and-ax/

 

 

 

 

Extend Microsoft 365 BC and NAV with Smart IP&O

Microsoft Dynamics 365 BC and NAV can manage replenishment by suggesting what to order and when via reorder point-based inventory policies. The problem is that the ERP system requires that the user manually specify these reorder points and/or forecasts. As a result, most organizations end up forecasting and generating inventory policies by hand in Excel spreadsheets or using other ad hoc approaches. Given poor inputs, automatic order suggestions will be inaccurate, and in turn the organization will end up with excess inventory, unnecessary shortages, and a general mistrust of their software systems.  In this article, we will review the inventory ordering functionality in BC & NAV, explain its limitations, and summarize how Smart Inventory Planning & Optimization can help reduce inventory, minimize stockouts and restore your organization’s trust in your ERP by providing the robust predictive functionality that is missing in Dynamics 365.

 

Microsoft Dynamics 365 BC and NAV Replenishment Policies

In the inventory management module of NAV and BC, users can manually enter planning parameters for every stock item. These parameters include reorder points, safety stock lead times, safety stock quantities, reorder cycles, and order modifiers such as supplier imposed minimum and maximum order quantities and order multiples.  Once entered, the ERP system will reconcile incoming supply, current on hand, outgoing demand, and the user defined forecasts and stocking policies to net out the supply plan or order schedule (i.e., what to order and when).

 

There are 4 replenishment policy choices in NAV & BC:  Fixed Reorder Quantity, Maximum Quantity, Lot-For-Lot and Order.

  • Fixed Reorder Quantity and Max are reorder point-based replenishment methods. Both suggest orders when on hand inventory hits the reorder point.  With fixed ROQ, the order size is specified and will not vary until changed.  With Max, order sizes will vary based on stock position at time of order with orders being placed up to the Max.
  • Lot-for Lot is a forecasted based replenishment method that pools total demand forecasted over a user defined time frame (the “lot accumulation period”) and generates an order suggestion totaling the forecasted quantity. So, if your total forecasted demand is 100 units per month and the lot accumulation period is 3 months, then your order suggestion would equal 300 units.
  • Order is a make to order based replenishment method. It doesn’t utilize reorder points or forecasts. Think of it as a “sell one, buy one” logic that only places orders after demand is entered.

 

Limitations

Every one of BC and NAVs replenishment settings must be entered manually or imported from external sources.  There simply isn’t any way for users to natively generate any inputs (especially not optimal ones). The lack of credible functionality for forecasting and inventory optimization within the ERP system is why so many NAV and BC users are forced to rely on spreadsheets.  Planners must manually set demand forecasts and reordering parameters.  They often rely on user defined rule of thumb methods or outdated and overly simplified statistical models.  Once calculated, they must input the information back into their system, often via cumbersome file imports or even manual entry.  Companies infrequently compute their policies because it is time consuming and error prone. We have even encountered situations where the reorder points haven’t been updated in years. Many organizations also tend to employ a reactive “set it and forget it” approach, where the only time a buyer/planner reviews inventory policy is at the time of order–after the order point is already breached.

 

If the order point is deemed too high, it requires manual interrogation to review history, calculate forecasts, assess buffer positions, and to recalibrate.  Most of the time, the sheer magnitude of orders means that buyers will just release it creating significant excess stock.  And if the reorder point is too low, well, it’s already too late. An expedite is required to avoid a stockout and if you can’t expedite, you’ll lose sales.

 

Get Smarter

Wouldn’t it be better to simply leverage a best of breed add-on for demand planning and inventory optimization that has an API based bidirectional integration? This way, you could automatically recalibrate policies every single planning cycle using field proven, cutting edge statistical models.  You would be able to calculate demand forecasts that account for seasonality, trend, and cyclical patterns.  Safety stocks would account for demand and supply variability, business conditions, and priorities.  You’d be able to target specific service levels so you have just enough stock.  You could even leverage optimization methods that prescribe the most profitable stocking policies and service levels that consider the real costs of carrying inventory. With a few mouse-clicks you could update NAV and BC’s replenishment policies on-demand. This means better order execution in NAV and BC, maximizing your existing investment in your ERP system.

 

Smart IP&O customers routinely helps customers realize 7 figure annual returns from reduced expedites, increased sales, and less excess stock, all the while gaining a competitive edge by differentiating themselves on improved customer service.

 

To see a recording of the Dynamics Communities Webinar showcasing Smart IP&O, register here:

https://smartcorp.com/inventory-planning-with-microsoft-dynamics-nav/

 

 

 

Smart Software named a Microsoft Co-sell-ready partner

Inventory Optimization and Demand Planning now more accessible to extend Microsoft Dynamics

Belmont, Mass., February 2022 –  Smart Software is pleased to announce that it has been named a Microsoft Co-sell-ready partner as a leading demand planning and inventory optimization solutions provider.  Microsoft customers leverage Smart’s web-native platform for Inventory Planning and Optimization (Smart IP&O) to develop consensus forecasts, manage demand, and optimize stocking policies.

Co-selling with Microsoft sales teams and Microsoft partners will empower the Smart Software’s team to reach a vast community of Microsoft-managed customers to collaborate on various opportunities. This process includes building demand, sales planning, sharing sales leads, accelerating partner-to-partner empowered selling, and delivering marketplace-led commerce.  Smart IP&O leverages field-proven analytics, probabilistic modeling, and the latest advancements in forecasting technology to predict future demand, prescribe optimal stocking policies, and identify opportunities for operational improvement.  Users can transfer forecast results, order quantities, and stocking policies to Microsoft Dynamics in a few mouse clicks helping build additional value and extend the life of their Microsoft Solutions.

Greg Hartunian, CEO of Smart Software, stated, “The abilities to dynamically identify discontinuities in demand and supplier lead times, prescribe optimal stocking policies that yield the most profit, and accelerate planning frequency, are especially critical and central in today’s hyper fluid supply chains. As a result, customers leveraging Smart IP&O can effectively wield inventory assets, improve their operations, lower costs, improve customer service, and outperform the competition. We look forward to working closely with Microsoft to help our joint customers achieve these key benefits. 

 

About Smart Software, Inc.
Founded in 1981, Smart Software, Inc. is a leader in providing businesses with enterprise-wide demand forecasting, planning and inventory optimization solutions.  Smart Software’s demand forecasting and inventory optimization solutions have helped thousands of users worldwide, including customers at mid-market enterprises and Fortune 500 companies, such as Mitsubishi, Siemens, Disney, FedEx, MARS, and The Home Depot.  Smart Inventory Planning & Optimization gives demand planners the tools to handle sales seasonality, promotions, new and aging products, multi-dimensional hierarchies, and intermittently demanded service parts and capital goods items.  It also provides inventory managers with accurate estimates of the optimal inventory and safety stock required to meet future orders and achieve desired service levels.  Smart Software is headquartered in Belmont, Massachusetts and can be found on the World Wide Web at www.smartcorp.com.

 

 


For more information, please contact Smart Software, Inc., Four Hill Road, Belmont, MA 02478.
Phone: 1-800-SMART-99 (800-762-7899); FAX: 1-617-489-2748; E-mail: info@smartcorp.com

 

 

Dynamics DAC Webinar: Inventory Planning Processes.

Minimizing excess stock, equipment downtime, and lost sales requires the right planning foundation. Most companies struggle to keep up, putting businesses at risk when the insulation of a growing top line thins. Smart Inventory Planning and Optimization is an integrated set of native web applications that provides a single, easy to use, scalable, environment with field proven inventory and forecast modeling that optimizes inventory stocking policy and improves forecast accuracy.

Please join our webinar at Dynamics Communities DAC , featuring Greg Hartunian, CEO of Smart Software, who will identify the main problems of inventory planning processes and show in a live Demo how to solve them.

 

  ON-DEMAND VIDEO REGISTRATION FORM  

 

Please register to attend the webinar. If you are interested but not cannot attend, please register anyway – we will record our session and will send you a link to the replay.

 

We hope you will be able to join us!

SmartForecasts and Smart IP&O are registered trademarks of Smart Software, Inc.  All other trademarks are the property of their respective owners.


For more information, please contact Smart Software,Inc., Four Hill Road, Belmont, MA 02478.
Phone: 1-800-SMART-99 (800-762-7899); E-mail: info@smartcorp.com