Inventory Management

Effectively Balance Inventory and Service Levels

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Balance the conflicting priorities of ensuring attainment of on-time delivery targets while balancing the inventory investment.

Effective inventory management ensures there is enough supply available to cover variations in demand and supply availability, while minimizing the expense of that supply. RapidResponse helps customers effectively and continuously align their inventory levels and budgets with the company’s financial business plans.

Tailored for Your Business

RapidResponse applications are based on best-practices and standard process flows established by our years of successful deployments at a multitude of world-leading manufacturers. The out-of-the-box Inventory Management application enables quick implementations and also acts as an advanced starting point for a tailored solution that meets your company’s unique needs.

The Added Value of Integrated Applications

Among the greatest advantages of any given RapidResponse application is the ability to leverage it in conjunction with other applications as part of a broader, integrated solution. Depending on the need, significant added benefits can be achieved by using the Inventory Management application alongside one or more related applications to ensure synchronization across interrelated planning processes. Companies that use the Inventory Management application can achieve advantages and broader value by using it with connected applications such as (but not limited to):

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  • Cross-site inventory visibility with the ability to proactively identify inventory risks and opportunities
  • An ability to analyze which products/parts are not performing to target and subsequently re-examine inventory policy settings for better performance
  • An ability to make informed tradeoffs between on-time delivery targets and inventory levels to maximize corporate performance
  • Maintenance or reduction of inventory levels across categories

Functional Capabilities

  • Define target values by inventory category (e.g. finished goods, work in progress, raw material)
  • Achieve enterprise-wide view of projected inventory levels by inventory category and ABC category with comparison against targets
  • Manage assumptions
  • Simulate and compare the effect of various time-phased and demand-driven safety stock planning and re-order point planning policies
  • Perform gap analysis of actuals against target values to understand deviations, along with an ability to drill-to-details
  • Synchronize safety stock changes with ERP

IP Inventory Planner Dashboard

Managing Performance

In addition to the standard corporate measures of revenue, margin, on-time delivery and constraint utilization, metrics associated specifically with inventory management are also included in the application’s out-of-the-box dashboards. This allows for focused management of the performance measures that are most applicable to the function at hand.

Added measures presented in the Inventory Management dashboard include:

  • On Hand vs. Target—a dollarized measurement of actual inventory by part class (e.g. finished goods (FG), semi-finished goods (WIP) and raw material (RM)) compared against the annual plan.
  • On Hand by ABC Classification—a dollarized measurement of actual inventory by ABC classification of parts compared against the annual plan.
  • Demonstrated Service Level—the demonstrated customer service level percentage (on-time delivery), per period, compared against the annual plan.
  • Periods of Supply by Part Category—a measurement of the number of periods of supply that the ending inventory balance (per period and category) is expected to cover.
  • Excess Value—a time-phased measurement of the excess value over a horizon.
  • Obsolete Value—a time-phased measurement of the obsolete value over a horizon.

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Inventory Management Process Components

The following graphic illustrates the out-of-the-box Inventory Management application process. This process can be tailored to meet your company's specific business needs.

Inventory Management Process

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Closing the Loop

The Inventory Management application has the ability to ‘close the loop’ on data to the transactional system (ERP), whereby you can send data that is created/edited within RapidResponse back to the transactional system automatically. This avoids a user having to update two systems.

In the Inventory Management application, safety stock quantity changes are captured and can be sent back to the transactional system.

Customer Quote on Serving Unique Needs

RapidResponse ROI Customer QUote

Inventory Management Customer Quote

Supply Planning Customer Quote

Inventory Reductions Delivery Time Improvements Customer Quote

Inventory Reduction Targets Customer Quote

Operations Performance Benefits Customer Quote

Inventory Management Improvements Customer Quote

Cross Functional Supply Chain Visibility Customer Quote

Supply Chain Analysis Customer Quote

Our finished goods inventory was reduced by 20% within 3 months of deploying RapidResponse.

Shellie Molina, Vice President, First Solar
TVID: 589-4FF-2F6


TriQuint Using RapidResponse Supply Chain Analytics for Better Inventory Management

TriQuint - Using RapidResponse Supply Chain Analytics for Better Inventory Management

TriQuint Accurately Projecting Inventory

TriQuint - Accurately Projecting Inventory

MC Assembly Improving Inventory Turns

MC Assembly - Improving Inventory Turns

Hubbell Managing Demand Variability

Hubbell - Managing Demand Variability