Formalising the demand and inventory management processes includes defining KPIs and alerts ... inventory re-ordering sy
For many organisations, how they manage unanticipated events is a measure of their success and maturity. Leaders have established metrics and alerts that highlight deviations and provide the necessary insights to take immediate remedial action. Companies use Optimiza to maximise service levels, increase customer loyalty and protect margins. They do this not only by aligning demand and supply processes but also through building, managing and executing a dynamic, agile and responsive demand and replenishment plan. Formalising the demand and inventory management processes includes defining KPIs and alerts that provide up-to-the-moment visibility.
Why Optimiza? Optimiza customers align cross-functional teams internally and externally using the continuous improvement framework, and formalise their processes into a structured auditable system.
Demand Planning Forecast accuracy is able to yield a greater equivalent returns on a company’s financials than any other planning activity. Regardless of a company’s level of maturity the need to generate a forecast is constant; there may in fact be multiple versions for multiple purposes: financial and budget planning, incentive management, procurement planning, warehouse sizing, or production planning.
Dynamic multi-level forecasting by product, geographic and channel hierarchies. Promotions management including “in promotion” forecasting tuning. Product life cycle management: phase in and phase out.
DEMAND PLANNING
Demand switching between sources, brands or channels. Forecast accuracy highlighting the most significant win to the business.
© 2015 LLamasoft, Inc. All rights reserved. v.04/01/16
Demand Planning PROCESS, DATA & KPI CONTROL
Supply Planning
TING EC RR CO
Challenge
MO NI TO RING
Demand, Supply and Inventory Planning and Optimisation
Inventory Planning OPTIMISING
Optimiza as your competitive advantage Process management and output control: Ensures constant and rigorous adherence to processes and tight control and auditability of changes. A continuous improvement framework: Provides customisable KPIs to improve performance and help monitor that changes are geared towards better performance over time. Data control and integrity: Enables a connection with any data source using all media types from ASCII Flat Files to EDI to Direct Database Data Transfer. Ensures the automation and monitoring of data updates. Fully integrated visibility layer: Allows organisations to easily build customisable dashboards, grids with MS Excel capabilities providing multiple data views and reports accessible via shortcuts from the user workbenches. Scenario management: Multiple users can share and model suggested changes and compare scenarios before live implementation.
Inventory Optimisation Inventory optimisation plays a pivotal role in “supply/demand balancing”. Unlike traditional inventory re-ordering systems, Optimiza builds a business-specific inventory model that takes into account the unique supply, demand and flow characteristics of each product.
Scientifically determine what inventory is needed to achieve service levels, given the existing flows and anticipated supply and demand fluctuations.
INVENTORY PLANNING
Calculate and maintain the optimal safety stock and replenishment orders. Project future investment, procurement and warehousing requirements for their business.
Supply Planning Busy inventory planners have little time to validate supplier information or monitor and prioritise existing orders. The direct result is that orders are placed based on what may be an over or under estimated lead time and potential issues are only identified at the back door. Variations between suppliers actual lead times and expected lead times are having negative impact supply reliability and create a domino effect into the warehouse and on the shelves which shows in profit margins. Fundamental to the success of the last mile is the replenishment order calculation which requires input from cross-functional and multigeography demand planning processes, finance, procurement as well as inventory policies. Web-capabilities allow teams to proactively work with suppliers to ensure the most accurate information is used. Performance metrics can be generated to review orders as they progress through the cycle including:
SUPPLY PLANNING
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Factory confirms and makes orders Orders are consolidated at docks Orders leave docks Orders arrive and leave local port Orders arrive at warehouse
What You Need to Know Optimiza is used world-wide across a wide range of business sectors including automotive, aerospace, distribution, manufacturing, and retail companies. It enables organisations to configure, manage and execute a dynamic, agile and responsive global demand and/or replenishment plan.
LLamasoft, Inc. 201 South Main Street, Suite 400 Ann Arbor, Michigan 48104, USA Phone: +1 866.598.9831 LLamasoft.com |
[email protected] © 2015 LLamasoft, Inc. All rights reserved. v.04/01/16
Results Inventory cost reductions of between 10 and 25 percent Service level improvements between two and 10 percent
The Differentiators User specific ‘Planner Workbench’: Defined for each individual’s responsibilities, it manages their processes through “quick access” functionality. Relevant KPIs, alerts, exceptions and pending approvals are flagged and linked to a calendar that allows managers to schedule tasks and control timely completion. Business rules engine: Allows front end access to create and adapt multiple data transformations by safely accessing the database. This allows for the software to fit the company and not the company fit the software Built on the Six Sigma principles of DMAIC: Define, Measure, Analyse, Improve, and Control. Simulation engine: Enables the simulations of stocks, from production level loading to warehouse capacity, optimal replenishment, transport constraining and freight cost optimisation using in-memory capability.
