Inventory Optimization

A further step beyond the issue of stock indicators is the methodical optimization of the inventory. Cost pressure forces a reduction of stock without endangering the availability of the goods towards the customer. A project for inventory optimization aims to optimize delivery availability with higher stock turnover and lower stocks at the same time. As a basis for this, you will develop market oriented product segmentation with optimized planning and stocking strategies. To achieve these goals, a transparent, rule based and integrated procedure for determination of optimized stocks is as important as a software tool for article segmentation, simulations, indicators and analysis.

Steering of stock levels here means active development of strategies and rules to determine stock relevant disposition parameters for each article.

The first step for this is the creation of transparency. This is achieved by analyzing the master and inventory data. Have a look at our article “stock indicators” on this. The next step is segmentation of the articles according to availability and value criteria. From this segmentation suitable stocking and planning strategies can be derived. We offer the right tools for ‘interactive segmentation’ and simulation of deliberate scenarios. This results in a stock matrix or ‘stock dice’ in the form of a freely configurable ABC / XYZ analysis, which transparently portions and displays even vast stock master data.

In the next step the parameters relevant for stock optimization like lot sizes, safety stock, reorder points and maximum stock levels is carried out. By defining these parameters according to segments, you create more optimization potential without losing transparency. You can transfer this procedure to all semi-finished articles and raw materials along the supply chain. Our additional tools for parts list resolution and transparent navigation along the diverse parts list levels support these optimization steps.

To determine the right inventory parameters for your strategy we offer diverse simulation methods, in which you can play through deliberate scenarios of your business planning data, analyze the results and select the right strategy. This results in a clearly defined range of products with optimized stock parameters and delivery times into the market.

Moreover new chances and dimensions for your stock controlling open up. Using the stock dice you can quickly and easily find deviations from your calculated optimums and thus identify cost drivers and derive necessary activities.

A long time and lasting optimization of the stock value will be possible by introducing integrated inventory management processes into the daily routines. Critical for success is the introduction of methods and algorithms, a clear definition of rules and criteria as well as the integration into the production planning process.

We offer a combination of methodology and software with the objective of picturing business processes systematically, automated and concurrent. With our many years of proven project methodology we will guide you from the concept to active steering of your inventory. We will support you with our templates and guarantee a successful implementation of your inventory optimization within a very short time.

The benefits of inventory optimization for your immediate return-on-investment:

  • Interactive segmentation of large stock master data creates immediate transparency
  • Stock matrix, ‘stock dice’,  in the form of an ABC / XYZ analysis with retraceable data
  • Optimization of disposition parameters by simulation of planningscenarios including availabilities
  • Clearly defined range of goods with optimized inventory parameters and delivery times into the market
  • Integrated inventory management processes guarantee sustainability


Demo videos you’ll find on our YouTube channelhttps://www.youtube.com/user/simmethsystem

Interested in further details? Please do contact us via mail or visit one of our webinars.