Solvoyo advanced analytics will help you set the optimal inventory investment for your customer service strategy and recommend the best customer service targets while protecting your performance from forecast error and supply variability
Inventory Planning involves decisions about the level of inventory the location and the mix of products. Inventory is a managed buffer in the supply chain network that protects customer service performance from forecast errors, operational inefficiency, supply variability, and vendor performance. It needs to be tightly coupled with demand and supply planning, as they share common planning parameters and influence each other.
On-Time Fulfillment & Availability
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 (market basket analysis), order reliability, forecast error, supply variability, life-cycle state of a product, and life-cycle state of a customer.
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. Solvoyo platform provides the ability to measure each of these input parameters or receive them as input from other systems, recalculate the safety stock values automatically and reconcile them based on investment targets across the network. Solvoyo will also adjust stock targets in different echelons of the same network (commonly called Multi-echelon Inventory Optimization), protecting service levels dynamically and, in certain cases, totally autonomously.