LLamasoft – Optimiza
Optimisation of demand, supply and inventory planning
Optimiza supply chain planning software is used by companies world-wide to maximise service levels, increase customer loyalty and protect margins. They do this by aligning demand and supply processes and building, managing and executing a dynamic, agile and responsive demand and replenishment plan. Formalising the demand and inventory management processes includes defining KPIs and alerts for up-to-the-moment visibility
- Forecast accuracy can yield a greater return on a company’s financials than any other planning activity. Organisations need forecasts to help with financial and budget planning, incentive management, procurement planning, warehouse sizing, or production planning.
- Dynamic multi-level forecasting by product, geographic and channel hierarchies
- Promotions management including “in promotion” forecasting tuning
- Product life cycle management: phase in and phase out
- Demand switching between sources, brands or channels
- Forecast accuracy highlighting the most significant win to the business.
Busy inventory planners have little time to validate supplier information or monitor and prioritise existing orders. The direct result is that orders are placed based on what may be an over or underestimated lead time and potential issues are only identified after the fact. This has a negative impact on supply reliability and creates a domino effect on the warehouse, store shelves and profit margins. Fundamental to the success of the last mile is the replenishment order calculation which requires input from cross-functional and multi-geography demand planning processes, finance, and procurement as well as inventory policies.
Performance metrics can be generated to review orders as they progress through the cycle including:
- Factory confirms and makes orders
- Orders are consolidated at docks
- Orders leave docks
- Orders arrive and leave local port
- Orders arrive at warehouse
Inventory optimisation plays a pivotal role in “supply/demand balancing”. Unlike traditional inventory re-ordering systems, Optimiza builds a business-specific inventory model that considers the unique supply, demand and flow characteristics of each product.
- Scientifically determine what inventory is needed to achieve service levels, given the existing flows and anticipated supply and demand fluctuations.
- Calculate and maintain the optimal safety stock and replenishment orders.
- Project future investment, procurement and warehousing requirements for their business.
Optimiza Planning Software Enables
- Process management and output control
- A continuous improvement framework
- Data control and integrity
- Fully integrated visibility layer
- Scenario management