"A very important part of our project was the automated classification and grouping of products. Based on each SKU’s forecast accuracy and contribution margin, we now have the ability to dynamically optimize our safety stocks to match our target service levels."

Patrik Färdow, COO

 

Automated classification

Optimity ABC Analyzer automatically classifies each of your products based on actual data and proven optimization techniques. By evaluating key product information such as profit and margin contribution, order frequency and forecast accuracy, ABC Analyzer objectively categorizes your products. The categories provide the basis for determining your optimal inventory management parameters, such as safety stock levels and replenishment frequencies.

Effective inventory management

ABC Analyzer helps you manage your inventory more effectively. For companies with a lot of SKUs, it’s unsustainable to manage all products in the same way. Using ABC Analyzer, you can streamline your inventory management and ensure that the proper attention is given to the products and categories that need it the most, and let the system take care of the rest.

Focus on the exceptions

ABC Analyzer alerts you to inventory positions of specific challenge and importance to the business, where historical supply and demand patterns are not relevant. With clear visibility of your products contribution to your bottom line, you can make better and more informed decisions about stock levels and replenishments. By regularly re-calculating your ABC classifications, you will also ensure that your product categorization remains up to date.

Optimity ABC Analzyer

  • Understand the tradeoffs

    Know precisely which products and customers to prioritize and what the trade-offs are to achieve the best business results.

  • Multi-dimensional ABC analysis

    Analyze across different dimensions like sales value, frequency and profit margin

  • Make the right investments

    Create plans that are based on optimal investment in products, resources and customers

ABC Analyzer Features

Run ABC Analysis by looking at multiple dimensions concurrentlyIntegration with ERP system so it is easy to import data and export new ABC classes
Include several ABC dimension in the same viewTight integration with other planning modules to allow setting up business rules and policies by ABC Class
Identify patterns across different dimensions, such as demand predictability, lead times, and profit margin

Download the White Paper - Setting the Optimal Safety Stock

Setting the right safety stock is of critical importance.
It’s the buffer that ensures you can manage the fluctuations in demand and supply. You want to find the optimal mix so that you can ensure excellent service levels, but at the same time not tie-up capital in surplus stock.
Read the white paper and learn how you find the right balance.
Download the White Paper now >>