Inventory Optimisation

Transcription

1 Inventory Optimisation AGR Microsoft Dynamics NAV

2 AGR is a specialist supply chain planning company offering software, training and consultancy solutions that optimise the flow of goods throughout the supply chain for retail, distribution and manufacturing companies. AGR s main aim is to increase the availability of goods with a minimum amount of capital tied up in inventory. This is achieved through integrated planning processes and technology. AGR was established in 1997 and has offices in the UK, Denmark and Iceland, through the rest of Europe, US and Asia AGR is supported by trusted distribution partners.

3 Supply Chain Best Practice The three main areas of best practice in Supply Chain that AGR concentrates on are: Demand Management Inventory Optimisation Enterprise Sales and Operations Planning (S&OP)...The demand management process involves more than just forecasting... These areas rely on a combination of people, process and technology. PEOPLE PROCESS TECHNOLOGY Demand Management The demand management process involves more than just forecasting. It encompasses planning demand, communicating demand, influencing demand and prioritizing demand. Benefits of a good demand management process include: The ability to ensure correct resources are in place including people, money and materials Improved control of service levels Early identification of problems in the supply chain Improved communication to enable sales teams to set correct customer expectations in terms of product availability and delivery PLANNING COMMUNICATING DEMAND MANAGEMENT PROCESS PRIORITISING INFLUENCING

4 Inventory Optimisation Inventory Optimisation is a method of balancing capital investment objectives or constraints with service levels goals over a multiple stock-keeping units (SKUs), while taking demand and supply volatility into account. Inventory Optimisation relies on good demand forecasting and subsequent management processes. It takes the output from this process as input for calculating the optimum stock replenishment calculation. Companies today face an ongoing balancing act as they try to: Carry enough inventory to respond quickly to customer demand and Minimize investment in inventory, facilities, and equipment to reduce storage and transportation costs However, the benefits of Inventory Optimisation include % reduction in funds invested in safety stock 5-20% decrease in write-offs of surplus and obsolete stock 10-25% fewer stock-outs, resulting in improved availability and productivity 10-25% drop in administrative costs for replenishing inventory 33-66% less resource time spent managing inventory For AGR customers happy with their current service levels, inventory optimisation has resulted in decreases in inventory levels of between 15-20%. Overall it is a careful balancing act and inventory optimisation techniques manage this balance well. AGR 5 eliminates excess costs from supply chains by determining expected future demand and optimising inventory levels to ensure maximum availability with minimum capital tied up in stock. Enterprise Sales and Operational Planning (S&OP)...AGR 5 eliminates excess costs from supply chains by determining expected future demand... Sales and operations planning is a monthly management process that ensures that a company is focused, aligned and engaged in the agreed priorities of the enterprise. In addition it is a method to manage on-going changes and in practice becomes a re-planning process. To this end it is cross-functional and driven by strategy, demand and supply. Whilst demand management and inventory optimisation processes must look at the lowest level of detail (normally the item or SKU), sales and operations planning is an aggregate process looking at top down, middle out and bottom up planning processes. Whilst involving cross-functional teams it is important that information can be presented to the management group by product, customer, channel, location and other defined dimensions. For example, sales teams need to be able to see the anticipated demand forecast by customer in order to be able to input any changes into the process. AGR has experience in implementing S&OP practises in various businesses throughout Europe. The process involves integrating best practise methods with AGR software solutions in order to improve demand management and provide collaboration throughout the whole business. 1 Demand Management Process Oliver Wight International

5 AGR Software and Services Strategic Consulting...Software training is part of the standard implementation process... AGR is a supply chain company that has over 15 years of experience working with companies on their supply chain processes. The company offers benchmarking services and strategic consulting to help enterprises move forward with best practice processes in order to gain the most profitable results. Training and Education When changing processes in an enterprise, it is important that all employees understand the fundamentals of the new changes in order to engage and work to the best advantage. AGR offers a variety of public and private courses from a 1 day forecasting workshop to full APICS Certification in Production and Inventory Management courses. Software training is part of the standard implementation process and can be complimented by general supply chain management training. Software AGR 5 is a suite of software modules that helps automate the best practice processes within a business. Modules are available to buy separately so that organisations can start with a basic, low cost forecasting module and build up to a full suite of modules that seamlessly interact with each other. AGR 5 modules include: - AGR Demand Forecaster - AGR Inventory Optimiser - AGR Sales Planner - AGR Promotions Manager MANAGE BY EXCEPTION REPORTS AND ALERTS INVENTORY OPTIMISER SALES PLANNER DEMAND FORECASTING PROMOTIONS PLANNER EMBEDDED TECHNOLOGY CONNECTED TECHNOLOGY* *Connected Technology AGR 5 integrates to 10+ enterprise resource planning (ERP) systems including: SAP/IBM AS/400/Sage ERP X3 - further information on request.

6 Contact Us Technology Management helps Manufacturing and Distribution companies drive forward with Microsoft Dynamics NAV, Dynamics CRM and Office 365, as well as the supporting infrastructure. Having delivered over 2,000 successful projects, we ve plenty of experience implementing business systems, Microsoft Dynamics solutions and the technical infrastructure to support them. We are a Microsoft Gold Certified Partner for ERP & CRM and can deliver Microsoft Dynamics solutions on your own IT infrastructure, hosted in our UK data centre or in the Microsoft Cloud. Based in the Midlands, we support clients across the UK and further afield. Talk to us today for a jargon free discussion on how Technology Management can help your organisation drive forward : Call: hello@tecman.co.uk Visit: /02 Technology Management St Mark s Church St Mark s Road Wolverhampton WV3 0QH Gold Enterprise Resource Planning Microsoft Dynamics NAV Gold Customer Relationship Management