Inventory Controlling
Storing inventory is imperative, but it is also expensive. In order to find the optimal balance between high service level and low inventory levels at all times, implementing an inventory control process that calculates the days of inventory on hand, analyzes weak points and thus enables improvement measures, is a must. After all, a wide product range requires differentiated strategies and measures for maintaining inventory.
Overview
Inventory controlling serves as the link between inventory and financial management and is an essential part of inventory optimization. Creating transparency amidst complex, interrelated processes is essential if companies want to maintain an overview of their stock situation. Through the use of meaningful and informative analyses that take the past, present and future development of inventory into consideration, companies can make better informed operative planning and strategic management decisions.
Contact
Christoph Wiericks
Consultant
Tel: +49 (0) 2408 / 9456 - 1333 c.wiericks@informinform-software.com
Solution ADD*ONE Features
ADD*ONE provides companies with detailed analyses regarding inventory developments, allowing for the identification of undesirable changes before they happen and optimized decision-making capabilities. Some key features include:
- Key Figure Reporting
Calculation of various key figures and their graphical representation both at the item and aggregated (individually defined) levels
- Operative analysis of bottlenecks
Identification of structural and isolated bottlenecks via graphical comparisons of interrelated key figures
- Simulations
Powerful "if-then" capabilities allow users to test the sensitivity of forecasts or examine the consequences of particular strategic scenarios
- KPI Monitor
Individual definition of reports and group analyses.
- ABC Analyses
Fully automatic calculation of various ABC analyses, i.e. for identifying inventory drivers or items with a high contribution margin
- Service Level Optimization
Comparing the ideal stock situation for a given service level with the current situation allows for the discovery of unused potential.
Benefits
ADD*ONE provides users with sophisticated solutions for strategic and operational inventory controlling to improve the inventory planning process. Benefits include:
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Optimal Transparency
Summarize a vast amount of individual pieces of information to conclusive key figures in an uncluttered graphical representation
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Identification of weak spots and potentials
Identification of structural or current weak spots by using a graphic juxtaposition of interdependent key figures.
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Reliable planning
The simulation of various planning scenerios delivers a basis for decision-making at all planning levels – from single items to the complete product portfolio
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Management Support
Extensive functionality offers managers the capability to observe stock levels from various perspectives and make informed business decisions.
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Reduced effort
Comprehensive evaluation of complex interrelated key figures with just a few mouse clicks.
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Overall improvement of inventory management
Continual improvement of the inventory management process through the addition of controlling functions to the forecasting and planning tasks.
Dynamic Aggregation
Dynamic Aggregation
With the dynamic aggregation function, planners are able to break away from the fixed configuration of traditional controlling: all key figures in ADD*ONE can be summarized and displayed at every planning level. Users are able to configure unique interfaces that show all relevant key figures and evaluations, providing maximized flexibility. The controlling results from the dynamic aggregation can be exported to other applications and distributed to across the company, providing managers in various departments with a statistical overview of inventory key figures.
Economic Service Level
Economic Service Level
An increase in the target service level results in the need for higher availability. Higher availability provides planners with more inventory to meet demand for items that otherwise may not have been on hand with the previously defined target service level. However, the increase in sales may be offset by growing inventory costs as stock levels rise in order to meet the new service level targets. Questions then arise as to what truly constitutes an economic service level.
With ADD*ONE the economic service level is calculated, providing users with a qualified goal which can have a direct impact on the success and performance of a company.
Reporting
Reporting and Analyses
The report function is an instrument to display key figures or often used analyses. All data existing in ADD*ONE can be analyzed with reports. The results of a report can be saved or used for further processing in other applications.
Reports are available at various levels. They can relate to all items in the system, to a group of items that can be freely defined, to individual items as well as to an individual supplier or a group of suppliers. Graphical displays for each report can be generated for the quick identification of trends and outliers.
References
Contact
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