Inventory Optimization
Optimity’s Inventory Optimization solution ensures that you always have the right stock where and when you need it
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Serve your customers better with less stock
Inventory management is a critical part of an efficient supply chain. Too much inventory consumes capital and increases the risk of stock becoming obsolete, while not enough will negatively impact your customer service.
Optimity’s Inventory Optimization solution ensures that your stock is optimally managed at all times.
- Optimized Plans
- Real-time visibility
- Dynamic safety stock
- Multi-echelon optimization
- Simulation & analytics
Make your inventory investment count
Optimity uses powerful optimization technology to determine optimal safety stock levels, order quantities and order frequencies for all of your products.
Business constraints such as existing procurement contracts, available warehouse space and production capacity are all taken into account, ensuring that your inventory plans are always fully feasible and that the capital tied up in your available stock is serving your business in the best possible way.
Take control with real-time inventory visibility
With Inventory Optimizer you’re always in full control – empowered to act before potential stock issues turn into real problems.
Real-time visibility gives you a clear view of every item’s current stock position and forward projection. And because the system automatically alerts you to any issues, and allows quick drill down from aggregated views, your inventory managers can be much more efficient.
Dynamic safety stock optimization
Optimizing safety stock is about determining the proper balance between the cost of missed sales and the cost of holding stock. Inventory Optimizer automatically calculates the optimal inventory and replenishment parameters over time, including safety stock and replenishment frequency – for each product and location. In doing so, the tool considers factors such as demand variation, supply lead time, replenishment frequency, supply lead-time variation, standard cost and profit contribution.
Seasonality and other forecasted variations in demand and supply are also considered in order to determine the best safety stock levels at every point in time.
Optimize multi-tier inventory networks
In larger supply chains, balancing the stock held in your central warehouse vs. regional distribution centres is critical. Optimity’s multi-echelon inventory management ensures your stock is in the best locations to serve your customers.
There are many factors that determine the optimal inventory and safety stock distribution, from customer ordering patterns and service level requirements, to supply and production lead times. Inventory Optimizer easily solves this problem.
Make better decision with scenario planning
Inventory Optimizer lets you analyze the impact of your decisions – before you implement them. Every time you run the optimizer, the system recalculates your optimal safety stock levels and replenishment parameters.
Your users can review the results and compare with the existing settings, and choose to pass the results to the Optimity supply chain planning products and/or your ERP system.
Solution features
What our customers are saying
It has already saved us nearly $3,5 million, and we’ve only had Optimity running for a few weeks. This is without counting the reduced warehousing, transportation, and packaging costs. It’s a massive win for us.Rastelli Foods Group Steve Rossiter, Production Planner
We’re cutting stock levels by 5 to 10% with maintained delivery performance. We’re delighted with these results.Group of Butchers Bart Kroot, Supply Chain Manager
With Optimity, we not only serve our customers better with less stock, we also plan our sourcing to get better prices and avoid expensive spot market purchases.Lofbergs Jerker Friberg, Logistics Manager
We now have the forward visibility needed to build and hold the right stock, and this puts us in a much better position to meet customer demand.Bubbies Jeff Stites, COO
With Optimity we now have the ability to dynamically optimize our safety stocks to match our target service levels.Orkla Patrik Fardow, COO
A solution for growing companies
Optimity’s inventory optimization solution will grow along with your business. Connect to your existing PLM, ERP and CRM systems to ensure the entire company is always in sync and working from the same data. You can easily expand the solution footprint by adding more modules from Optimity’s supply chain suite.
Whether you’re moving away from planning in spreadsheets or looking to optimize your entire supply chain, Optimity has the solution.
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.
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Insights on inventory optimization
