Multi-Echelon Inventory Optimization

Description

Inventory management software is not equipped to balance supply and demand holistically. That would require optimizing safety stock and service levels across the product spectrum, and through each and every delivery echelon for the greatest net benefit to the enterprise. This challenge is the bread and butter of inventory optimization software, which has the prescriptive-analytic capabilities to optimize policies and plans at all levels for best-possible net outcomes. This means continually updating multi-echelon stock levels and auto-adjusting recommended inventory levels for demand variability. This results in maximized service levels, customer satisfaction, and net margin.

Key Challenges

Fickle consumer demand conspire to inflate inventory levels and costs

It’s a jungle out there. Global competition, offshoring, transport costs, commodity prices, and fickle consumer demand conspire to inflate inventory levels and costs. Not just carrying costs from tied up working capital, but lost sales from stockouts

Solution

Optimally balance service level and safety stock

Vanguard Predictive Planning for Multi-Echelon Inventory Optimization (MEIO), which can optimally balance service level and safety stock for maximum benefit.

Detailed simulation and optimization

Detailed simulation and optimization adjust for complicating factors, such as seasonal demand, limited historical sales, and more. Supply planners have unlimited simulation and what-if capability, down to the part level.

Key Benifits

Model trade-offs between service level and cost.

Vanguard Predictive Planning allows organizations, big and small, to create the most accurate forecasts and plans with the least amount of labor.

Improve customer service levels

Circumstances change rapidly. Having the right analytics platform to anticipate change and model the best way forward is critical to survival, as well as success.

Optimize safety stock

With Vanguard Predictive Planning for MEIO, organizations can let the system optimize safety stock levels based on inventory strategy and service level requirements.

  • Run discrete event simulations to evaluate results of competing plans.
  • Improve inventory turns.
  • Reduce stockouts and holding costs.
  • Maximize service level, revenue, and margin.

Customer Feedback

“27% year-over-year increase in monthly inventory utilization in dollars” – Dave Palew, Director of Supply Chain, Aurobindo Pharma US