cut inventory carrying costs in the cloud | eazystock
Post on 21-Oct-2014
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Small and Mid-sized distribution businesses may have their own unique challenges. How can a distributor minimize inventory carrying costs whilst providing high service levels for products? Spreadsheets are time-consuming and often inaccurate, whilst ERPs only provide limited capabilities and support. EazyStock cloud-based inventory management software allows Distributors to leverage the same advanced inventory planning and optimization tools as Large Enterprises that were previously too costly and time intensive to implement and maintain. This webinar will explain how Cloud software solutions work and the advantage they deliver. Understand how EazyStock supports Small and Mid-size Distributors to cut inventory carrying costs whilst maintaining high service levels, quickly and without risk. Distributors can streamline inventory management for one or multiple warehouses, connect with dealers and distributors, and collaborate more closely with retailers to balance inventory levels and availability of products.TRANSCRIPT
Solutions for Small & Medium size Distribution businesses
August, 2012
Cut Inventory Carrying Costs in the Cloud
Page 2 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
Syncron – Corporate overview
Knowledge and Experience
World-leading provider of supply chain planning software and services
12+ years developing and delivering Inventory Management applications
Industry Focus & Expertise
Wholesale & Distribution, Manufacturing, Aftermarket
Local Offices
Company offices in Sweden, United Kingdom, Germany, Poland and Japan
Page 3 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
Key inventory priorities for SMB Distributors
1. Minimize inventory carrying cost
2. Maintain high service levels for high-margin items; slightly lower service levels for low-margin items)
3. Plan inventory for central warehouse and dealer or distributor/sales locations
4. Highly automated and efficient inventory replenishment process
5. Support retailers to maintain suitable inventory levels and assortments
Page 4 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
Current inventory planning tools are inefficient
Spreadsheets are common inventory management tools. They are cheap and give reasonable results but are unsophisticated:
Very time consuming to maintain
Manual process for all actions
Unscientific stocking and replenishment calculations
Prone to errors
Invisible losses from missed sales
Can never approach optimized inventory levels
Page 5 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
Current inventory planning tools are inefficient
ERP modules provide support for inventory management but have shortfalls:
Difficult to set up and maintain
Requires substantial effort to keep operational
Very few systems handle network optimization
Inferior mathematical/statistical models yield sub-optimal results
ERP companies have limited in-depth knowledge of Inventory Management
Page 6 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
Alternative to spreadsheet and ERP inventory tools
EazyStock is a world-class cloud inventory management application designed for Small and Medium size Distribution Businesses.
Standard software with the same inventory planning and optimization functionality used by Large Enterprises:
Demand forecasting
Replenishment planning
Inventory optimization
Multi-location planning
Inventory simulation
Page 7 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
EazyStock – world class inventory management for small and medium size distribution businesses
Software is already installed in the cloud and ready to access
Simply plug in to you ERP systemSAP, Oracle, Sage, Infor, Microsoft, Lawson/Movex, IFS, Visma, Epicor…
Standard application means no customization required
Low-cost, predictable monthly Software-as-a-Service subscription
Software upgraded automatically twice per year
IT hardware and software maintenance included
Dedicated Customer Support specialists for EazyStock users
User
EazyStockInventory Experts
ERP
Page 8 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
EazyStock inventory planning and optimization
ABC / Frequency analysis
Forecast
Calculate parameters
Generate orders
In stock?
Chosen Algorithm
Calculated demand
Reorder Point
Order
Demand Analysis
Page 9 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
EazyStock inventory planning and optimization
Page 10 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
EazyStock inventory planning and optimization
Page 11 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
Quickly achieve 30% inventory performance improvements
30%Less
Overstock
30%More Efficient
30%Lower
Carrying Costs
Page 12 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
Proven results
Company Service Level Increase Inventory Reduction
Lindab 57% 95% 54%
Electrolux 62% 94% 21%
Lantmännen Maskin 88% 96% 36%
Additional Benefits:
1. Increased productivity in planning and ordering – less resources required
2. Reduced stock obsolecence
3. Fewer rush orders
Page 13 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
Most popular
Easy setup, fast improvements – scalable inventory planning and optimization to suite your business requirements
BasicBasic inventory planning
• Import item data
• Import demand history
•Part profiling
•Demand forecasting
• Inventory policy
•Safety stock calculation
•Advanced reporting and KPIs
•Parameter export to ERP
•Service level simulation
AdvancedAdvanced inventory optimization and
replenishment
Includes all Basic features plus:
• Inventory simulation
• Import of inventory levels
• Import of open purchase orders
•Generation and export of replenishment orders
•Order quantity calculation
EnterpriseMulti-level enterprise supply chain
optimization
Includes all Advanced features plus:
•Redistribution
•Virtual stocking
•Multi-echelon optimization
Page 14 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
Typical EazyStock Project
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9
Planning & design
Create interfaces
Create CMP. In the cloud
Planning workshop
File validation
Load data
Validate results
System test
Cut over
Load data
Validation of results
Go-Live
Education
Page 15 COPYRIGHT © SYNCRON INTERNATIONAL AB 2012
Now visit www.syncron.com/eazystockto watch the short video demonstration