Automating Inventory Management. Manage your inventory efficiently!
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The document discusses the challenges of inventory management faced by manufacturers and distribution companies, highlighting issues such as operational efficiency, customer demand, and outdated software. It emphasizes the need for automation in inventory management, presenting solutions like forecasting, min-max levels, and dynamic buffer stock to optimize inventory levels. The software 'soft4inventory' is introduced as a solution that improves customer service levels and reduces inventory levels effectively.
Automating Inventory Management. Manage your inventory efficiently!
- 1. Automating Inventory Management Efficient Stock Management
- 2. 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.
- 3. Inventory management Inventory management challenges are a vexing problem for manufacturers, affecting: Operational efficiency Customer satisfaction Revenue
- 5. 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.
- 6. Inefficient Processes Many inventory management systems are built on or rely on outdated software or manual processes.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.
- 7. 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.
- 8. Challenges Faced by Distribution Companies Conflict
- 10. 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
- 11. What Can Help Overcome the Challenges?
- 13. Inventory Management Automation methods Forecasting Forecast quality is based on history, expecting it will be repeated in future. Min – Max Specify 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 Buffer Stock buffers are monitored against consumption and dynamically readjusted accordingly.
- 14. Automated Forecasting Data quality issues can’t be solved 100% automatically; Each algorithm setup performs well only in certain cases and in certain periods of time; Forecast errors are unpredictable and could be significant; Therefore forecast’s for every item must be revised by high competence staff. It is a costly and time consuming procedure.
- 15. Min - Max Main 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.
- 16. Dynamic Buffer • Order ONLY what‘s been sold • Stock is enough ONLY till the next replenishment • Adjust inventory levels ONLY when the situation changes Demand 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
- 17. What Do I Need?
- 18. Company needs one tool that could speak everybody‘s language – such as Soft4Inventory
- 19. Efficient Inventory Management Software Soft4Inventory 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.
- 21. Soft4Inventory Calculator Using our web calculator you can calculate the approximate benefits your company might achieve after implementing Soft4Inventory. Try the Calculator NOW
- 22. 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
- 23. 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?
- 24. Contact Us Need help or a consultation? Start optimizing your inventory levels today! Contact us at ask4soft@soft4.eu or visit www.soft4inventory.com Follow us on