Smart IP&O goes live in 90 days and reduces inventory by $9 million in the first six months
Belmont, MA., 2021 – Smart Software, Inc. provider of industry-leading demand forecasting, planning, and inventory optimization solutions, today announced its selection, purchase, and implementation of its flagship product, Smart IP&O, by a major US electric utility. The platform is now utilized to plan over 250,000 spare parts valued at over $500,000,000 across the Utility’s multi-echelon distribution network. Smart IP&O was implemented in just 90 days and has been credited for reducing inventory by $9 million while maintaining service levels within its first six months of operation.
The implementation of Smart IP&O is part of the Utility’s Strategic Supply Chain Optimization (SCO) initiative to replace twenty-year-old legacy software. Subsequent phases of the Smart Software implementation will integrate Smart IP&O to their IBM Maximo Asset Management system.
Key to the selection and success of the project to-date is Smart Software’s proven track record planning intermittent demand that is prevalent on spare and service parts. Intermittent or lumpy demand is characterized by frequent periods of zero demand interspersed with large spikes of non-zero demand that seemingly occur at random. The Utility estimates that over 80% of its parts have intermittent demand. Smart Software leverages probabilistic forecasting that creates thousands of possible future outcomes of demand and lead times. The technology’s proven ability to accurately forecast the required inventory to achieve the high levels of service the Utility requires and to do so at scale were critical differentiators.
Implementation was accomplished within 90 days of project start. Over the ensuing six months, Smart IP&O enabled the adjustment of stocking parameters for several thousand items, resulting in inventory reductions of $9.0 million while sustaining target service levels. Significant additional savings – and improvement in service levels for critical spares – are anticipated in the coming year as stocks for additional facilities are brought into the system.
“We have had many very strong successes helping customers in asset-intensive industries optimize their parts inventory,” said Greg Hartunian, CEO of Smart Software. “Combined with the Utility’s support from the top-down, hands-on involvement from IT, and user enthusiasm to embrace a new approach, we had a great recipe for success. We look forward to building on our early success to deliver even more value together.”
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 Inventory Planning & Optimization is a multi-tenant web platform that 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. The solution 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 at www.smartcorp.com.
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: firstname.lastname@example.org