Why is it important to have inventory management software?
For companies, Inventory management, or stock management, is a key element to optimize the logistics service level and meet customer expectations. For this reason, within the logistics-distribution chain, stock management must include solid inventory planning.
The definition of an infinite capacity replenishment plan is achieved through the analysis of some factors:
- Sales forecasts and their reliability
- Target service level
Main features of inventory management software
Optimal stock management
In order to manage the inventory and to optimize the stock, vendor management inventory is handled directly by the company:
- Plans monthly target stock profiles, finding the best trade-off between service level, coverage depth and inventory management costs.
- Configures different coverage policies at different product/market aggregation levels and calculates target stock for every logical node in the logistics network
- Generates a Master Production Schedule by conciliating monthly strategic targets with real stock availability according to a set of inventory policies
- Calculates the replenishment plan for every logical node in the logistics network and allows top-down and bottom-up analysis of stock coverage, replenishment and trends
- Forces service levels, safety stock, target stock and replenishment values
Benefits of an inventory management software
The benefits of adopting a vendor-planned inventory management software affect all levels of the logistics-distribution chain:
- Service-level improvement, limiting stock-outs
- Inventory cost reduction, by reducing surplus stock
- Improved profit margins, through the application of targeted replenishment policies
- Supply cost reduction, with the option of forward planning
- Optimized stock control in relation to individual distribution warehouses
- Logistics cost reduction linked to stock transfers
Features of sedApta Suite Inventory Management
Inventory Management is the advanced system of sedApta Suite for warehouse inventory management.
The two analytical modules in this tool are capable of ensuring the achievement of important strategic advantages:
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Inventory Control is the component that helps determine the replenishment plan for each node on the logistics chain. Through the simulation of multiple scenarios, the tool allows users to determine the best inventory policy, considering the target service level, stock coverage objectives and characteristics and constraints of the logistics chain (e.g. supplier lead times).
The module calculates optimum safety stock using a mathematical engine. Compliant determination of the service level is ensured through reliability of the forecast curves and the financial and logistics parameters.