Inventory Optimization
Inventory Optimization Solution
Inventory management is like riding a unicycle along a dirt road while juggling five balls simultaneously—there’s a lot of activity to synchronize, with zero room for error. You need to execute and plan at the same time. However, the process repetition can mesmerize and distract. Disregard one pothole, and you’ll hit the dirt. – AMR Research, September 9, 2009
AMR Research has found that deploying multi-enterprise inventory optimization solutions delivers a 3 to 6 month return on investment and produces a dramatic improvement in perfect order performance and supply chain agility. To achieve true inventory optimization, consumer products companies must model the entire supply chain, end-to-end, to ensure that inventory strategies simultaneously optimize inventory at all echelons of the supply chain.
Campbell Soup
- Cut forecast error by 50%
- Decreased safety stock 20%
- Improved order fill 5%
- Saved $10 million in inventory
Multi-Enterprise Inventory Optimization
Optimizing one echelon at a time disregards the impact each echelon has on the others. Terra’s Multi-Enterprise Inventory Optimization (MIO) optimizes inventory across all echelons of the supply chain, from raw materials to warehouses to retailers. By modeling the entire supply chain, MIO generates an inventory strategy that decreases safety stock requirements by 10 percent or more without compromising service levels. Easy to use and scalable, MIO provides root cause analysis for changes in safety stock and simulation capability for improved planning and analysis.
