Visit your local website for products & services specific to your country.
All you need to know about inventory optimisation
Inventory management software (also called inventory planning software) goes beyond simple record-keeping to provide optimization, simulation and analysis you need to make better supply chain management decisions.
Inventory management software can reduce inventory costs and improve customer service at the same time. It secures that the right amount of stock is in the right place at the right time and at the lowest possible cost. It has become a critical tool in many organizations as inventory carrying costs can be reduced by upwards of 30%.
A subset known as inventory optimisation software employs complex algorithms to recommend what to stock and in which quantities to meet demand across the entire supply chain or at a specific location.
Inventory management software is available standalone or in ERP and supply chain management (SCM) suites. However, not all solutions include inventory optimisation and product life-cycle tracking which are key components for successful inventory management.
Advanced Planning and Scheduling (APS) tools help manage the raw materials and components used in manufacturing, and Warehouse Management Systems (WMS) have analogous features for warehouse inventory management.
Today, the term “inventory management software” denotes a distinct category of specialised tools for collecting and analysing inventory-related information for planning purposes.
In contrast, inventory management software optimises what products to keep in stock and in what quantities. Inventory management systems optimise the safety stock, reordering points and economic order quantities (EOQ) of inventory to ensure that future demand can be meet according to plan.
The quickest return on investment often comes from lower carrying costs. Below is a direct quote from an EazyStock customer outlining their operational and financial benefits of optimising their inventory:
We reduced our stock levels by over $1 million, corresponding to 23%, reduction in inventory while at the same time improving our service level by 13% points.
Svante Stenström, Supply Chain Manager at AxIndustries.
Here are three main advantages of optimising your inventory management processes with software:
Inventory management software must be integrated into existing ERP or business systems – be careful when choosing a provide that this doesn’t come at great expense. Evaluate different system providers’ capabilities to integrate or transfer data between your ERP/WMS etc and the inventory management solution. With EazyStock you can get started with a simple Excel import and export data transfer. We’ll have you up and running in days and your business will get value from the system within weeks.
At EazyStock we believe that every company holding inventory should have access to a great inventory optimisation tool that’s easy to understand and maintain. Just because the functionality in a system is advanced, it doesn’t mean that the user should require a Ph.D. degree to use it. Users of inventory management software can be easily trained to understand the system and the data it produces.