Multi-Dimensional Product And Customer Segmentation

Not all products are equal in profitability and not all customers have the same priority. Few companies take the time to differentiate their customer service targets and the corresponding inventory investment. Solvoyo platform has built-in analytics to segment your products and customers based on the following measurable dimensions: Total revenue, total profit, incremental profit, hit rate, order reliability, forecast error, supply variability, life-cycle state of a product and customer.

Adjust Your Safety Stocks Dynamically Across The Supply Chain

Safety stock protects customer service performance from forecast errors, operational inefficiency, supply variability, and vendor lead-time performance. Therefore, when one of these measures changes for any product, then the safety stock for that product should be dynamically recalculated. However, most companies use a set-it-and-forget-it approach in safety stock targets and fail to adjust to the rapidly changing business conditions.

Maintain Full Visibility Of And Take Proactive Actions On Your Network Inventory

Inventory loss tree is a way of differentiating all of your physical inventory based on its purpose: ● Safety stock to protect against errors and variability ● Cycle stock to cover demand until the next supply event (e.g., replenishment, procurement, or production) ● Allocated inventory for unshipped orders or planned production ● In-transit inventory that is on the way ● Excess stock that is eating into your cash pile ● Dead inventory that should be cleared out of the storage and the books

Align The Inventory Planning Decisions Across Strategic, Tactical, And Operational Dimensions

The strategic decision starts with the fundamental one: should I keep inventory or rely on the supplier? If you decide to keep inventory, then there are several tactical and operational decisions you should be aligned on. Solvoyo platform gives you a quantitative basis to answer all inventory investment questions with state-of-the-art optimization and advanced AI/ML methods and keep the decisions consistent across time horizons.