Inventory Management is All in the Tradeoffs

Balancing Inventory and Service Levels With an Unmatched Level of Efficiency and Effectiveness

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Decisions are made every day to determine how inventory should be placed and moved. In today's highly dynamic world, without immediate and comprehensive inventory management analysis across your global supply chain, you risk expensive and flawed actions with each decision — the cost of which are poor service, higher inventory levels and lower profits.

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The key to a breakthrough in inventory management is to address the root cause of the problem — empowering the organization as a whole to be more responsive to change. There are a significant number of variables that affect inventory and each variable implies risk. Model them all.

Understanding the Variables

Simulate any inventory variable on the fly for instant impact analysis. Project inventory levels by modeling changes in inventory parameters.

Managing Inventory Imbalances

Be alerted to inventory imbalances that have occurred or are anticipated to occur based on current conditions. Drill down to details to understand and manage inventory policy impact.

Determining the Alternatives

Collaboratively evaluate course correction alternatives according to their achievement against key inventory metrics and performance measures.

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The RapidResponse® Inventory Management application enables:

Inventory target setting by part class
Finance can define annual plan targets for how much inventory they desire to keep by class (finished goods, work-in-progress and raw materials), as well as excess and obsolete targets over the course of the year.

Comparison of actual state versus targets
Inventory planners can evaluate historical, current and future projected performance against inventory targets, and drill into deviations between the plan and current realities to determine the root cause.

Gap and trend analysis
RapidResponse captures historical snapshots of safety stock levels, demand, supply, and current or projected inventory and uses this data to show how performance is trending over time. Inventory planners can drill down from exception dashboards to review any performance gaps. Analysis of these exceptions may lead to documenting the assumptions that explain the deviations or in making changes to inventory policy parameters to correct them.

Inventory ABC classification
Inventory planners can review inventory values by an ABC classification with the capability to drill into detailed part level views of demand, supply, cost, policy and responsibilities to determine if inventory policy or classification changes are required.

Excess and obsolete inventory analysis
Inventory planners can monitor the status and trend of excess and obsolete (E&O) inventory over time by various categorizations (products, regions, commodities, etc.) using hierarchy filtering. The application also provides visibility to deviations between the target E&O values and actual performance.

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With RapidResponse, you can perform inventory management in the same system as connected functions such as supply planning, master production scheduling and demand planning to ensure you make the right tradeoffs between service levels and inventory levels in order to maximize overall corporate performance.

THE RESULTS?

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An enterprise-wide view of projected inventory levels by inventory category - finished goods (FG), work in progress (WIP), raw materials (RM), showing comparison against targets.

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Ability to identify which products/commodities/parts are not performing to target and ability to re-examine inventory policy settings for better performance.

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

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

Shellie Molina, Vice President, First Solar
www.techvalidate.com/product-research/kinaxis-rapid-response
TVID: 589-4FF-2F6

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