ON TIME INVENTORY (OTI)
Create an Accurate Inventory Plan

TACKLE INVENTORY MANAGEMENT CHALLENGES

Inventory planning is a key aspect of supply chain management. Even with modern planning systems, the right inventory planning techniques need to be implemented to streamline the entire planning process.

Companies understand the importance of planning, especially as an unexpected or unplanned event – such a major promotion resulting in out-of-stocks or the inability to move certain items off the shelves—threatens their business’ growth.

The main issue is defining the right inventory policy and enforcing it. As the number of items is greater and the customer’s supply chain is longer or more complex, businesses find it difficult to plan inventory and therefore suffer from the effects of out of stocks and overstocks, which harm sales, damage company reputations and service levels. They also weaken profitability due to high storage costs, unnecessary inventory transfers, expensive and urgent deliveries, inventory write-offs and adjustments, and more.

Companies need to define and enforce their inventory policy: On one hand, they should have enough inventory, taking into account unexpected events, sudden increases in demand, delays, or out of stocks. On the other hand, surplus stocks could harm the efficiency and profitability of the company. Even in companies which have an inventory policy, most find it difficult to enforce on a daily basis.

However, with the right solution and a policy which is regularly enforced, it is possible to overcome inventory planning challenges, optimize inventory and accelerate growth

BENEFIT FROM THE BEST INVENTORY PLANNING TECHNIQUES

It’s not easy to position the right inventory in the right place at the right time

OTI helps leverage real-time demand signals and forward-looking market forecasts, to create an accurate, phased inventory plan. This enables businesses to deliver superior service, while controlling costs.

Inventory Policy management

Automatic classification of “planning families” based on various business rules

Approval of transition between planning families

Automatic forecasting that includes the BEST FIT model (dozens of forecast algorithms with self-automatic tuning)

Management and handling forecast exceptions based on KPIs

Automatic calculation of inventory levels required at item level (order point / order size) according to inventory policy - covering days based on projected inventory

Surplus lists (Active/ Passive sale)

Alternates

Business rules to realize the "cheapest" / shortest purchase strategy

Advanced dashboard

Inventory Rules Engine - a broad range of rules enabling business flexibility

BENEFITS

Overcome inventory planning challenges, optimize inventory and accelerate growth

Budget and advanced analytics: accurate projections of inventory, purchases, warehouse flow, manufacturing

Reduce stock levels by 10-25% (Improved working capital)

Prevention of surplus stock

Reduce out of stocks events by more than 60%

Improve COGS implement advanced business rules to enforce inventory policy

Advanced analytics