Inventory Strategy Manager

• Increased Stock Availability
• Reduced Stockholding and Obsolescence
• Optimised Stock Turns
• Simple Inventory Optimisation Process

Balance Service Levels against Inventory Cost

Cash flow and profitability are the key drivers for any business and for those which need to satisfy product demand, inventory is a key instrument in their attainment. High service levels satisfy more demand, which generates higher profits, but holding the necessary inventory ties up capital and impacts cash flow.

This presents a trade-off, which is complicated by the fact that stock excesses and shortages are often suffered at the same time. Trying to cure the problem with a blanket increase or decrease in stock levels will help one, but only at the expense of the other. The reason is that each product's demand is quite different and the inventory policy (how stock levels are determined based on demand) needs to account for this if both problems are to be optimised. Furthermore, as demand constantly shifts, the inventory policy needs to track these changes.

Entalysis Inventory Strategy Manager has a multi-dimensional inventory policy, which accounts for these different types of demand and enables optimisation of the service level/ stockholding trade-off, crucially reducing stock excesses and shortages at the same time. Its clear reporting and simple inventory optimisation process enable the planning and realisation of business targets at each point within the supply chain.

Next: Inventory Optimisation