Inventory Optimisation
The inventory optimisation functionality is the lynch-pin that holds the demand planning and replenishment planning steps together. GAINS employs sophisticated, automated, and proprietary algorithms that consider a comprehensive set of cost and source variability, including service-level goals, demand plan error and lead-time for every SKU/Location. Performing these calculations for every item at every locations, and uniquely considering all the factors relevant to that particular item location is essential to optimising inventory, minimising operating costs and maximising sales. The detailed and comprehensive approach GAINS adopts results in:
The GAINS Inventory Management / Optimisation proprietary algorithms include:
- High customer service, better DIFOT results, step changes to in-stock position, fewer lost sales and reduced expediting;
- Reduced inventory investment, less obsolescence’s and wastage, and lower write-offs;
- Lower storage and flow costs, minimised total annual operating costs and maximised profit
The GAINS Inventory Management / Optimisation proprietary algorithms include:
- Inventory Policy Optimisation algorithms to precisely achieve targeted service levels by comprehensively managing sources of planning error. These include: demand plan/forecast error, lead-time variation, supply yield, and optimal ordering cycles
- Service Level Optimisation algorithms that automatically determine service levels uniquely for each item to achieve an aggregate target while minimising or maximising a business objective, (e.g. minimised total cost, minimum inventory, specific inventory turns target, maximum profit, etc.)
- Sourcing Optimisation algorithms that determine the supplier(s) that provide the lowest-total-cost supply, including solving for the trade-off of unit cost, purchase minimums, and lead time
- Network Flow Optimisation algorithms that determine which supply route provides the lowest-total-cost supply, considering lead times, minimums (line-item and PO-level), handling, and transportation costs
- Multi-echelon/Indenture Stocking Policy Inventory Optimisation algorithms that determine whether or not to stock an item and at what service level. These solve for interdependencies among locations and/or within the bill-of-materiel (BOM) to devise postponement strategies and address customer expectations to minimise cost or maximise profit
- Integrates with planogramming systems and manages store presentation requirements