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

Despite substantial investments, inventory levels remain high for many companies, representing a huge drain on operations’ performance.

The key to effective inventory management is empowering your organization as a whole to be more responsive to change.

When supply chain decision makers are empowered with capabilities that deliver global supply chain visibility, improved planning, risk trade-off and response management, they’re able to leverage inventory assets more efficiently and make more effective inventory management decisions for the company.

The RapidResponse® Inventory Management application ensures you have the right inventories, at the right place, at the right time, to drive improved margins, minimize inventory levels and avoid excess and shortage conditions. For Kinaxis customers, inventory management is neither a niche issue, nor a onetime project – it’s a continuous value-driven activity.

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 software 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):

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

Shellie Molina, Vice President, First Solar

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Benefits

  • Enjoy cross-site inventory visibility with the ability to proactively identify inventory risks and opportunities
  • Analyze which products/parts are not performing to target and subsequently re-examine inventory policy settings for better performance
  • Make informed tradeoffs between on-time delivery targets and inventory levels to maximize corporate performance
  • Easily maintain or reduce inventory levels across categories

Functional Capabilities

  • Define target values by inventory category (e.g. finished goods, work in progress, raw material)
  • Achieve an enterprise-wide view of projected inventory levels by inventory category and ABC category with comparison against targets
  • Capture and manage assumptions made during the setting of inventory policies for future reference
  • 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 Flow Chart

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Closing the Loop between inventory management and your erp system

The Inventory Management application has the ability to ‘close the loop’ on data to the transactional system (ERP), allowing you to send data created/edited within RapidResponse back to the transactional system automatically.

Many Kinaxis customers import data from several disparate ERP systems within their network to support a single integrated view of their supply chain, against which they can simulate various business conditions, including how inventories are managed across the enterprise. The integrated data defines the supply chain network and supports a view of the complete supply and demand picture across all defined site boundaries. A change in demand or supply at any level invokes all of the imbedded ERP analytics, including safety stock and order policies. This provides immediate visibility to the impact of change on inventory, and reveals opportunities to avoid excess and shortage conditions. If inventory polices are out of date, you’ll immediately understand what needs to be reviewed. Any changes can then be incorporated back in the ERP system to ensure planning parameters are up to date to meet or exceed inventory targets.

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MC Assembly Improving Inventory Turns

MC Assembly - Improving Inventory Turns

Hubbell Managing Demand Variability

Hubbell - Managing Demand Variability