automating inventory management. manage your inventory efficiently!
TRANSCRIPT
Competition among manufacturers and distributors continues to rise. Thus, companies are constantly
looking for ways to maximize their efficiency and gain better control over
their warehouse inventory management.
Inventory management
Inventory management challenges are a vexing problem for manufacturers, affecting:
Operational efficiency
Customer satisfaction
Revenue
Knowing the Inventory
Company should know what is in stock, what is going to be ordered, the size
(both quantity and shape) of the order, and what needs to be replenished.
Inefficient Processes Many inventory management
systems are built on or rely on outdated software or manual
processes. That creates incredibly challenging work environment for
anyone involved in the inventory management
process.
Customer Demand
Customers needs are changing every day and it is difficult to
compete with number of suppliers, keep up with those
needs of customers and manage inventory appropriately at the
same time.
Challenges Faced by Distribution Companies
Company goal:profitable business Conflict
Reduce stock
Increase sales
Increase stock
Reduce costs
PUSH approach: maximum inventory near to the customer
PULL approach: maximum inventory near to the factory and fast replenishment to the next link in the supply chains
Inventory Management Automation methodsForecastingForecast quality is based on history, expecting it will be repeated in future.
Min – MaxSpecify minimum and maximum inventory levels; when the inventory level drops below the minimum, the action is required in order to bring the balance back up to the maximum.
Dynamic BufferStock buffers are monitored against consumption and dynamically readjusted accordingly.
Min - MaxMain challenge is to find which item requires Min - Max level adjustment.
Min and Max levels for each item must
be adjusted manually;
Min - Max levels must be adjusted
after demand, lead time or
replenishment cycle changes;Automatic Min and
Max adjustments could be done using forecast algorithms, with all the earlier
described problems.
Dynamic Buffer
• Order ONLY what‘s been sold• Stock is enough ONLY till the next
replenishment• Adjust inventory levels ONLY when the
situation changesDemand changes
Lead time changes
Unreliable supply occurs
Permanent customer is
lost
End date of item life-cycle
changes
Promotion campaign
starts
Reacting to the actions of the competitors
Other factors
Efficient Inventory Management SoftwareSoft4Inventory uses well-recognized dynamic buffer technology, together with the LEAN pull replenishment approach, in order to optimize inventory levels efficiently.
Built on Microsoft Dynamics NAV, it helps to increase up to 50 % in the customer service level you want to achieve, and decrease up to 40% in the inventory level during the first year after Soft4Inventory implementation.
Soft4Inventory CalculatorUsing our web calculator you can calculate the approximate benefits your company might achieve after implementing Soft4Inventory.
Try the Calculator NOW
Clients Are Talking...
We chose Soft4Inventory – software solution, using dynamic buffer technology, which resolved our trade-specific challenges better than previously used automated forecasting and MinMax tools. Soft4Inventory is built into our operational Dynamics NAV system; as a result, the IT system load decreased, and we now also have faster access to all the necessary information.
Executive Director Andrius Rinkevicius
Answer these questions How do you manage your
stock?
How much do this impact the real demand?
Because of the human factor, how much additionally YOU must stock in
the supply chain?
How does this affect performance of your company ?
How well do your competitors manage stock?
Contact Us
Need help or a consultation?
Start optimizing your inventory levels today!
Contact us at [email protected] or visit www.soft4inventory.com
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