How easy is it to implement an inventory optimisation system?

Often a misconception for new clients we meet is that transitioning to a new inventory optimisation system requires:

1.?A lot of time to sacrifice for implementation

2. Multiple users are required to operate the system itself

However, implementing an inventory optimisation system can seem like a daunting task for many businesses. In this edition of our newsletter, we will explore how easy it is to implement an inventory optimisation system and the benefits it can provide to a business.

A key benefit of an inventory optimisation system is that it can help you reduce costs by minimizing the amount of stock you hold. By analysing your sales history and customer demand, the system can help you determine the optimal inventory levels needed to meet customer demand while minimizing costs. This can result in reduced storage and handling costs, as well as a reduction in the risk of overstocking.

Do I need a lot of?time?to implement an IO system?

Depending on your inventory optimisation requirements, it may come as a surprise that implementing a new system doesn’t actually require a lot of time at all, depending on your needs.

According to a report by McKinsey & Company, companies that implement artificial intelligence (AI)-powered supply chain solutions can achieve up to a 20% improvement in supply chain efficiency and a 10% increase in revenue.

In a matter of days, you could revitalise your supply chain and discover new ways to look at your data.

An inventory optimisation system provides efficiency by using your current sales data to analyse several factors, such as seasonal fluctuations, and detect trends to produce forecasts and safety stock suggestions. Better plans, lower business risk, and less stock-tied capital result from greater accuracy and overall supply chain efficiency.

Are multiple users required to operate an inventory optimisation system?

It is a common misconception that an inventory optimization system necessitates multiple users to operate it. While having multiple users with system proficiency can be advantageous, we believe that the true value lies in a system that is intuitive and easy to understand, enabling knowledge sharing among team members effortlessly and having your team all working from one version of the truth.

What’s the?ROI?

One of the main benefits seen through using an inventory optimisation system is a significant reduction in time spent on manual tasks, which can now be dedicated to other projects and activities by automating these tasks instead. When approached manually, unnecessary time can be wasted working out what, when, and how much stock to replenish. An inventory optimisation software system automatically calculates these values – considering factors including demand forecasts, safety stock, and supplier lead times, resulting in having the right stock, in the right place, at the right time. Your inventory optimisation system should be able to then prompt for your approval or can be managed by exception, only requiring human review for big-ticket decisions.?

JYSK found that using the AGR inventory optimisation software reduced their Inventory levels by 30% as well as Increased automation for purchasing managers.

After implementing AGR, we have lowered our inventory levels by over 30%, consequently freeing up valuable working capital and saving considerable time in the purchasing process.”

Grettir Bj?rnsson, IT manager, JYSK Canada

On average, our clients have seen a return on investment in less than 3 months, just one of the many benefits of using an inventory optimisation system!

Click here to read the full case study on JYSK and discover what our other clients have said about their experience of using AGR!