All You Need to Know About Inventory Optimization
Inventory optimization is a relatively new concept and can often be confused with basic inventory management practices. Learn more about inventory optimization and EazyStock in our Q&A below.
EazyStock is a cloud-based inventory optimization solution for businesses of all sizes. It connects to existing ERP, WMS or stock management systems to help you take control of your inventory, reduce costs and automate purchasing.
EazyStock automatically forecasts demand and calculates the optimal inventory levels and order parameters of all stock items. This data, combined with supplier information and lead times, generates automatic purchase proposals, optimized so that you never run out of stock.
Simply put, EazyStock makes sure that you’re carrying the right items to meet your stock availability targets without tying up too much capital.
Marketplaces around the global are getting more and more competitive, while supply chains are becoming more challenging to manage.
Businesses therefore need to have the right products in stock at the right time in order to keep customers happy. At the same time it’s also important to keep stock turnover healthy to prevent cash being absorbed in inventory sitting in the warehouse. EazyStock helps businesses find the right balance between these two conundrums.
Inventory management is the business process responsible for ordering, managing, storing and moving inventory. Inventory management software tracks the flow of goods from manufacturers to warehouses and on to the relevant sales channels.
In contrast, inventory optimization is the art of balancing high service levels with the lowest possible inventory investment. It allows businesses to ensure product availability, while reducing inventory costs and minimizing the risk of excess stock. This is done by forecasting demand and managing supply variables, while dynamically adjusting stock rules and inventory parameters.
Many businesses still use spreadsheets to forecast demand and calculate their ordering parameters e.g. reorder points, order quantities and safety stock levels, etc. However there are many drawbacks. Firstly, using manual spreadsheets takes up valuable time, especially as a product range grows. Secondly, spreadsheets are based on a snapshot in time and are out-of-date the minute the calculations are completed – particularity when markets are fast-moving and volatile. Thirdly, manual calculations are prone to inaccuracies and human error.
In contrast, EazyStock makes the work of inventory management teams much easier. For starters, it uses advanced algorithms that are much more powerful than any spreadsheet and updates every data point on a daily basis, so your data is always up-to-date and accurate. Without the need to build and update spreadsheets, inventory teams have much more time to focus on more important tasks, such as managing suppliers and helping customers.
When you book an EazyStock demo, our experts will first understand your business’ inventory management needs and establish if EazyStock is right for you.
We can also perform a stock health analysis, where we analyze your existing inventory data to give you a clear picture of how EazyStock could improve essential KPIs, such as stock availability, excess stock levels and inventory investment. Armed with this information you can then identify where and how EazyStock will make the biggest impact to your business.
We know you don’t want to get caught up in long, costly integration projects. That’s why we’ve made EazyStock easy to connect with your current business system. We offer ready-made connectors for some of the market’s most common business systems for extra fast implementation.
Our dedicated Customer Success team also helps you get started as quickly as possible and is then by your side to ensure you get the maximum ROI from your tool. Exactly how long the implementation takes varies from project-to-project – contact us for a more detailed schedule.
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