ToolsGroup Introduces First Outsourced Inventory Target Setting Service
BOSTON, MA, Mar 08, 2012 (MARKETWIRE via COMTEX) --
As a new addition to its "Powerfully Simple" supply chain planning
solution, ToolsGroup today announced the first outsourced service
that feeds optimized inventory targets to companies, allowing them to
manage and respond to demand volatility.
Many companies collect detailed demand data, but don't possess the
analytical tools to choose the right inventory targets to achieve
their performance goals. ToolsGroup's new outsourcing offering
provides these companies with a service that analyzes and understands
their demand and supply uncertainty and calculates optimized
inventory targets to achieve customer service levels objectives.
Inventory Optimization as an Outsourced Service
setting delivered as an outsourced service allows companies to avoid
implementing expensive systems and processes. Instead, users take
advantage of ToolsGroup's advanced inventory modeling and
optimization engine at their disposal. A secure cloud-based portal
allows users to easily upload data and retrieve inventory
Users get SKU-Location level inventory targets, such as safety stocks
and reorder points, for a low monthly cost. This approach allows
companies to deploy optimized inventory targets using their current
systems and processes. They can quickly deliver revenue, margin and
cost reduction objectives while avoiding both capital expenditure and
cost of ownership.
A typical user example of the new outsourced service is a North
American fast moving consumer goods manufacturer which is optimizing
800 unique SKUs in a network of four plants and 60 distribution
centers. Its challenges include seasonal capacity constraints and
high demand volatility driven by promotions, media events and
competition's activities. The service-based approach is helping it
address immediate working capital and inventory objectives during a
global ERP rollout.
Analyzing Demand Volatility to Improve Corporate Performance
volatility is cited by Gartner, IDC and other analyst firms as the
number one obstacle identified by corporate executives to achieving
their supply chain goals. But companies can overcome this obstacle by
positioning the right inventory levels across the supply chain to
absorb such volatility.
"Responding to the customer can be achieved with cost overruns,
excessive inventory and firefighting, but to respond profitably means
understanding the sources of volatility and planning for them
appropriately," explains Tim Payne, Research Director for Gartner
Research in Hype Cycle for Supply Chain Management, August 2011.
"Many companies need reliable inventory targets that will allow them
to achieve their customer service and corporate performance goals,
yet don't want to make a large upfront investment in software and
infrastructure," said ToolsGroup CEO Joe Shamir. "ToolsGroup and our
partners can help them extract the demand signal from the noise and
set the right inventory targets to deliver these objectives."
Available Now from ToolsGroup and Partners
The new outsourced
Inventory Target Setting service is available from ToolsGroup and its
partner network. Additional information on the new service will be
available at Convergence 2012 (Booth #952) March 18-22 in Houston,
where ToolsGroup will also be displaying SO99AX, their supply chain
planning software for Microsoft Dynamics AX.
ToolsGroup (www.toolsgroup.com) is a global
provider of Powerfully Simple supply chain planning software.
Powerful behind-the-screen engines enable highly intelligent
data-driven decision making. Reliable and scalable statistical models
are continuously and automatically tuned to automate and simplify the
planning and control process. Our customers overcome volatile supply
chains to generate accurate forecasts and outstanding
customer-service levels with less global inventory. ToolsGroup's
solutions span key supply chain planning areas such as Demand
Planning, S&OP, Demand Sensing, Promotion Forecasting and
Multi-Echelon Inventory Optimization.
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