Inventory optimization 2.0 - How next-gen tools can help you get to the next level
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Webinar 3:
Inventory Management 2.0
Get inspired in how many different ways optimization
improves your inventory management
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Bob Woodburn
>Senior VP Supply Chain, Papyrus
>Birling Associates
>Waverley TBS
>Danone
- 3. Papyrus value chain
With a fine meshed distribution network and effective customer services,
Papyrus contributes with cost and timesaving solutions for both
customers and suppliers
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- 4. © AIMMS - 2015 Do not copy, cite, or distribute without permission© AIMMS - 2015 Do not copy, cite, or distribute without permission
Marcel Mourits
> PhD in Supply Chain Network Design
& Operations Research
> Logistics Service Providers
> Retail
> SC & Manufacturing Consulting
> 3 years with AIMMS
Passion for improving decision making
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AIMMS…
… offers a new approach to solve critical business problems in typically
four months with our breakthrough technology.
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Optimization: the raw power to generate solutions
AIMMS helps you find the ‘Best Set of Actions’ to improve the situation
The Power of Optimization!
> generate multiple sets of actions for various scenarios
> evaluate performance, sensitivity, robustness
> always the best fit answer to your requirements and objectives
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Inventory Optimization
With demand becoming more volatile, product life cycles shorter and pressure on
costs higher, the challenge to drive your inventory down is mounting. In addition,
multi-channel multiplies the challenge.
THE REWARD IS HIGH:
ØMoney stuck in Product can’t be invested in growth
ØLower risk of obsolescence
ØLower cost of management and holding stock
ØLower effort in discounting
ØIncreased agility and focus; you’re always ready to look ahead
ØInventory masks your SC imperfections
IT IS NOT VERY EASY, THOUGH . . .
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Inventory Optimization: Theory
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what
service
level(s)?
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Inventory Optimization: Theory
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> What is the cost of a missed delivery?
> What are ways to prevent missing deliveries without adding inventory?
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Theory behind Inventory Optimization
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Theory behind Inventory Optimization
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Inventory Optimization; Examples
multi-echelon
integrating
inventory &
production
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On Focus, Scope and Impact
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REVENUE
growth
COST
reduction
INVENTORY END-2-END
myopic holistic
Pure
inventory
Production
&
inventory
End-2-End
including
inventory
Omni
Channel
inventory
Dynamic
Allocation
Clients to
depots
Shape
Demand to
flow
inventory
Relocating
RetailOutlet
inventory
Operations:
3D Slotting
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Inventory Optimization; who uses AIMMS?
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integrating
inventory &
production
end-to-end
supply chain
incl. inventory
store inventory
& baking
optimization
stock to site
allocation
multi-site
statistical
safety stock
store inventory
re-allocation
purchasing,
inventory, blending,
production
warehouse
operations
multi-echelon
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Bob Woodburn’s view
> Why is inventory optimization important for you?
> What are complicating factors in your inventory
management?
> What role do you see for planning technology in your
organisation?
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- 16. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Bob Woodburn’s view
> Why is inventory optimization important for you?
> What are complicating factors in your inventory
management?
> What role do you see for planning technology in your
organisation?
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- 17. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Bob Woodburn’s view
> Why is inventory optimization important for you?
> What are complicating factors in your inventory
management?
> What role do you see for planning technology in your
organisation?
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DEMO: Inventory & Production Optimization
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Like to experience for yourself?
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“ I’m amazed; I know of no
other vendor that builds MY
application on the fly in a two
day workshop! “
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Next Webinars in this series
For more information refer to: marcel.mourits@aimms.com
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