Inventory Optimization Solutions

Enabling organizations to fundamentally improve service levels, minimize inventory costs, and reduce lead times.

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Inventory Optimization

All inventories are not bad. In fact, inventory is the lifeblood of the supply chain. i2 Inventory Optimization enables peak efficiency by helping companies ensure that desirable levels of inventories are maintained where needed, while excess inventory is eliminated. Just as all inventories are not bad, not all products are created equal. i2 Inventory Optimization helps companies differentiate between their key products and the rest of the product line as well as adopt inventory policies that will maximize the volume and profitability of those key products during their life cycle.

Inventory Optimization from i2 is based on years of experience working with some of the best-managed supply chains in the world. i2 observed that these industry leaders' performance was differentiated through five best practices: monitoring customer buying behavior, "ABC" segmentation, postponement, optimized inventory policies, and continuous learning and process improvement. The i2 Inventory optimization solution can enable an organization to improve service levels and reduce inventory costs and lead times by integrating with ERP and supply chain systems to institutionalize these five best practices.

Key capabilities:

Tracking and analysis of transaction, customer buying patterns, and inventory performance
Multi-dimensional ABC segmentation by demand patterns and volumes, service criticality, product structure and life cycles, lead times, competitive positioning, or custom attributes
Best inventory policy determination for each SKU at each location it will be stocked
Multi-stage inventory and postponement optimization
Easy composition and analysis of "what-if" scenarios
Actual performance monitoring for continuous learning and process improvement
Rapid integration through services-based architecture
Rich and easily extensible library of packaged metrics, KPIs, and reports

Benefits of i2 Inventory Optimization can include:

Reduced inventory levels, expediting, and overall logistics costs
Increased service-level performance and customer satisfaction
Improved asset utilization and inventory turns
Improved inventory performance
Improved product availability while reducing carrying costs, risks, and cash-to-cash cycles

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Success Story

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“We have estimated that we will have a more than 300 percent ROI with Inventory Optimization,” Vancheeswaran said. By better managing its inventory, ON Semiconductor anticipates greater customer satisfaction because of higher customer service levels.

Inventory Optimization Solutions