Inventory Optimization

Maximize service and minimize costs


Safety stock levels, reorder points, lead times, and order quantity directly influence the service vs. cost relationship. Every day, the ERP system makes purchase order suggestions and manufacturing orders based on these drivers.  Ensuring that these inputs are understood and optimized will generate better returns on inventory assets.   Unfortunately, many organizations rely on rule of thumb logic,  institutional knowledge, and one-size-fits all service targeting that cause inventory costs to balloon and service performance to suffer.   Having thousands of items potentially stocked at multiple locations means planners don’t have the bandwidth to proactively review these inventory drivers on a regular basis resulting in outdated reorder levels and order quantities that compound the problem.


SmartForecasts and Smart Inventory Optimization (SIO) deliver inventory policy decision support and the means to share, collaborate, and track the impact of your inventory planning policy.  Starting off with a benchmark of current inventory costs and performance across several key performance indicators you can:

  • Identify where you are overstocked and understocked.
  • Modify  planning parameters based on your business rules, service targets, and inventory budget
  • Leverage the optimization logic in SIO to prescribe planning parameters for you.
  • Compare proposed policies to the benchmark
  • Collaborate and develop a consensus inventory plan
  • Automatically generate revised planning parameters as demand and other inputs change

Want to learn more about SIO?