Smart Software to Present at Epicor Insights 2022

Smart Software President and CEO to present Epicor Insights 2022 Sessions on Creating Competitive Advantage with Smart Inventory Planning and Optimization

 

Belmont, MA, May, 2022 – Smart Software, Inc., provider of industry-leading demand forecasting, planning, and inventory optimization solutions, today announced that it will present at Epicor Insights 2022.

Greg Hartunian, CEO of Smart Software, will present two sessions and will explain Epicor Smart Inventory Planning and Optimization at this year’s Epicor Insights event in Nashville, TN. Greg will show how to empower planning teams to reduce inventory, improve service levels, and increase operational efficiency.

  • The Prophet 21 presentation is scheduled for Wed May 25th, 11:30 am -12:15 pm  (CST) 

Prophet 21 Smart Software to present at Epicor Insights 2022

Smart Software Kinetic 21 Session Greg CEO

  • The Kinetic presentation is scheduled for Wed May 25th, 2:30 pm – 3:20 pm (CST) 

Kinetic Smart Software to present at Epicor Insights 2022

 

If you plan to attend this year, please join us at either session below and learn more about Smart Inventory Planning and Optimization as we highlight valuable features in our solutions. Epicor Insights 2022 will bring together more than 2,000 users of Epicor’s industry-specific ERP solutions for the manufacturing, distribution, and service industries.  To learn more, visit INSIGHTS 2022.

Insights Team at work

Smart Software is an Epicor Platinum Partner and leading provider of demand planning, forecasting, inventory optimization, and analytics solutions. Our web platform, Smart IP&O, leverages probabilistic forecast modeling, machine learning, and collaborative demand planning to optimize inventory levels and increase forecast accuracy. You’ll use Smart IP&O to create accurate forecasts and optimal stocking policies that drive automated ordering in Epicor. The platform includes bi-directional integrations to both Epicor ERP and Prophet 21.

 

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 Otis Elevator, 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

 

 

Smart Software and Arizona Public Service to Present at WERC 2022

Smart Software CEO and APS Inventory & Logistics Manager to present WERC 2022 Studio Session on implementing Smart IP&O in 90 Days and achieving significant savings by optimizing reorder points and order quantities for over 250,000 spare parts.

Belmont, MA, March 2022 – Smart Software, Inc., provider of industry-leading demand forecasting, planning, and inventory optimization solutions, today announced that it will present at WERC 2022.

Justin Danielson, Inventory & Logistics Manager at Arizona Public Service (APS), and Greg Hartunian, CEO at Smart Software, will lead a 30-minute studio session at WERC 2022. The presentation will focus on how APS implemented Smart Inventory Planning and Optimization (Smart IP&O) as part of the company’s strategic supply chain optimization initiative. Smart IP&O was implemented in just 90 days, enabling APS to optimize its reorder points and order quantities for over 250,000 spare parts. During the first phase of the implementation, the platform helped APS reduce inventory and achieve significant savings while maintaining service levels. Finally, the session will conclude by showing Smart IP&O in a Live Demo.

 

Warehousing Education and Research Council (WERC)

WERC is a professional organization focused on logistics management and its role in the supply chain. Since being founded in 1977, WERC has maintained a strategic vision to continuously offer resources that help distribution practitioners and suppliers stay on top in our dynamic, variable field. In an increasingly complex world, distribution logistics professionals make sense of things so that people get their products and services, companies deliver on their commitments, economies grow, and communities thrive.

WERC powers distribution logistics professionals to do their jobs, excel in their careers and make a difference in the world. WERC helps its members and companies succeed by creating unparalleled learning experiences, offering quality networking opportunities, and accessing research-driven industry information.

 

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 Otis Elevator, 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,

 


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

 

 

Optimizing Inventory around Suppliers´ Minimum Order Quantities

Recently, I had an interesting conversation with an inventory manager and the VP Finance. We were discussing the benefits of being able to automatically optimize both reorder points and order quantities. The VP Finance was concerned that given their large supplier required minimum order quantities, they would not be able to benefit.  He said his suppliers held all the power, forcing him to accept massive minimum order quantities and tying his hands. While he felt bad about this, he saw a silver lining: He didn’t have to do any planning. He would accept a large inventory investment, but his customer service levels would be exceptional.  Perhaps the large inventory investment was assumed to be the cost of doing business.

I pushed back and pointed out that he was not as powerless as he felt. He still had control of the other half of the procurement process: while he couldn’t control how much to order, he could control when to order by adjusting the reorder point. In other words, there is always room for careful quantitative analysis in inventory management, even when you have one hand tied behind your back.

An Example

To put some numbers behind my argument, I created a scenario then analyzed it using our methodology to show how consequential it can be to use inventory optimization software even in constrained situations. In this scenario, item demand averages 2.2 units per day but varies significantly by day of week. Let’s say the imaginary supplier insists on a minimum order quantity of 500 units (way out of proportion to demand) and fills replenishment orders in either three days or ten days in equal proportions (quite inconsistent). To spread the blame around, let’s also suppose that the imaginary supplier’s imaginary customer uses a foolish rule that the reorder point should be 10% of the minimum order quantity. (Why this rule? Too many companies use simple/simplistic rules of thumb in lieu of proper analysis.)

So, we have a base case in which the order quantity is 500 units, and the reorder point is 50 units. In this case, the fill rate is 100%, but the average number of units on hand is a whopping 330. If the customer would simply lower the reorder point from 50 to 15, the fill rate would still be 99.5%, but the average stock on hand would drop by 11% to 295 units. Using the one hand not tied behind his back, the inventory manager could cut his inventory investment by more than 10%, which would be a noticeable win.

Incidentally, if the minimum order quantity were abolished, the customer would be free to arrive at a new and much better solution. Setting the order quantity to 45 and the reorder point to 25 would achieve a 99% fill rate at the cost of a daily on-hand level of only 35 units: nearly a 90% reduction in inventory investment: a major improvement over the status quo.

Postscript

These calculations are possible using our software, which can make visible the otherwise unknown relationships between inventory system design choices (e.g., order quantity and reorder point) and key performance indicators (e.g., average units on hand and fill rate).  Armed with this ability to conduct these calculations, alternative arrangements with the supplier may now be considered. For example, what if, in exchange for paying a higher price per unit, the supplier agreed to a lower MOQ. Using the software to conduct an analysis of the key performance indicators using the “what if” costs and MOQs would reveal the cost per unit and MOQ that would be needed to develop a more profitable deal.   Once identified, all parties stand to benefit.  The supplier now generates a better margin on sales of its products, and the buyer holds considerably less inventory yielding a holding cost reduction that dwarfs the added cost per unit.  Everyone wins.

 

 

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 Otis Elevator, 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

 

 

Thoughts on Spare Busses and Spare Parts

 

The Covid19 pandemic has placed unusual stress on public transit agencies. This stress forces agencies to look again at their processes and equipment.

This blog focuses on bus systems and their practices for spare parts management. However, there are lessons here for other types of public transit, including rail and light rail.

Back in 1995, the Transportation Research Board (TRB) of the National Research Council published a report that still has relevance. System-Specific Spare Bus Ratios: A Synthesis of Transit Practice stated

The purpose of this study was to document and examine the critical site-specific variables that affect the number of spare vehicles that bus systems need to maintain maximum service requirements. … Although transit managers generally acknowledged that right-sizing the fleet actually improves operations and lowers cost, many reported difficulties in achieving and consistently maintaining a 20 percent spare ratio as recommended by FTA… The respondents to the survey advocated that more emphasis be placed on developing improved and innovative bus maintenance techniques, which would assist them in minimizing downtime and improving vehicle availability, ultimately leading to reduced spare vehicles and labor and material costs.

Grossly simplified guidelines like “keep 20% spare buses” are easy to understand and measure but mask more detailed tactics that can provide more tailored policies. If operational reliability can be improved for each bus, then fewer spares are needed.

One way to keep each bus up and running more often is to improve the management of inventories of spare parts. Here is where modern supply chain management can make a significant contribution. The TRB noted this in their report:

Many agencies have been successful in limiting reliance on excess spare vehicles. Those transit officials agree that several factors and initiatives have led to their success and are critical to the success of any program [including] … Effective use of advanced technology to manage critical maintenance functions, including the orderly and timely replacement of parts… Failure to have available parts and other components when they are needed will adversely affect any maintenance program. As long as managers are cognizant of the issues and vigilant about what tools are available to them, the probability of buses [being] ‘out for no stock’ will greatly diminish.”

Effective inventory management requires a balance between “having enough” and “having too much.” What modern software can do is make visible the tradeoff between these two goals so that transit managers can make fact-based decisions about spare parts inventories.

There are enough complications in finding the right balance to require moving beyond simple rules of thumb such as “keep ten days’ worth of demand on hand” or “reorder when you are down to five units in stock.” Factors that drive these decisions include both the average demand for a part, the volatility of that demand, the average replenishment lead time (which can be a problem when the part arrives by slow boat from Germany), the variability in lead time, and several cost factors: holding costs, ordering costs, and shortage costs (e.g., lost fares).

Innovative supply chain analytics uses advanced probabilistic forecasting and stochastic optimization methods to manage these complexities and provide greater parts availability at lower cost. For instance, Minnesota’s Metro Transit documented a 4x increase in return on investment in the first six months of implementing a new system. To read more about how public transit agencies are exploiting innovative supply chain analytics, see:

 

 

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