As the economy slows down and there is a squeeze on credit, the pressure to optimize inventory is growing.
Would you like to reduce inventory by 10% to 20%?
Are you looking to improve customer service levels by 10% to 15%?
Typically, industry has turned to expensive software to meet these objectives. Not anymore. Solvop offers IOaaS to optimize the stocking policies which you maintain in your ERP or spreadsheets.
Manufacturing & distribution companies use many stocking policies for inventory planning. Replenishments are triggered by reorder or Min/Max stock levels. Replenishments could also be triggered by sales forecasts. MRP translates the forecasts into requirements for intermediate items and raw materials items are ordered which follow some minimum or economic order quantities. Safety stocks are maintained in, to take care of demand or supply fluctuations.
Manufacturing & distribution companies use an ERP or some innovative spreadsheets to execute all these methods but suffer a serious limitation. The values of these stocking policies are defined either based on judgement or by using some simplistic text book calculations. These methods have some underlying assumptions e.g. continuous demand, normal distribution of demand, low variability which don’t hold good in today’s dynamic supply chain scenarios.
IOaaS overcomes these limitations by using powerful simulation techniques on your consumption data to arrive at optimum stocking policies. As these policies are rigorously tested on the consumption data of an item the results are quite predictable and reliable.
Solvop brings all of these to you through our simple yet powerful IOaaS. There is no investment in any software. We just check and fine tune your stocking policies periodically using simulation techniques. These simple but powerful services can produce amazing results.