If you are running a business, or even interested in one day owning your own business, inventory optimization is important. Inventory optimization can be difficult, if you aren’t using a proper system, or if you are inexperienced. First things first- What is Inventory Optimization?
Inventory Optimization
Inventory optimization is the practice of having the right inventory to meet your target service levels while tying up a minimum amount of capital in inventory. Inventory optimization is the next level of inventory management for warehouse and supply chain managers and buyers.
Inventory optimization means:
- Maintaining the minimum cost of average on-hand inventory while,
- Achieving the highest desired fill rates for the items being optimized
- Using least-cost reorder frequency
- Establishing predictive control over inventory performance using a company’s IT/ERP system (such as Verusen)
Inventory Optimization and Supply Chain Optimization Software
Companies that utilize inventory optimization software, are likely to reduced inventory levels by 25 percent in just one year.
Verusen has a solution for all of your optimization needs.
Verusen’s AI-backed cloud platform sits on top of your multiple data sources and automatically links and categorizes duplicate parts data. Eliminate excess inventory purchases when quantities exist on-hand? Check. Reduce obsolete, slow-moving, and overstock inventory? Check. Know exactly what materials are in stock and how best to deploy.
Oh, and our artificial intelligence continues to predict and learn from real actions over time to deliver faster inventory insights with increased reliability — at scale. That’s the power of Verusen.
With inventory data harmonized, Verusen provides the ability to search for the right materials with true quantities across the enterprise. This prevents having to get more materials. Need to add a new material? No problem. Verusen helps identify potential duplicates during the creation process. Enable the process to prevent over-purchasing and excess quantities in the future. Every material you order too much of, costs you money!
Verusen builds upon the knowledge of your inventory experts to create sustained, continuous application and improvement. Your experts still have ultimate control to accept Verusen stocking recommendations or otherwise. Meanwhile, Inventory Reports help keep teams performing at the highest level.
Learn about supply chain optimization from Verusen through testimony from a customer.
We Have Software, Now What?
As your organization reaches desired goals or when performance falls short of its potential, you can develop programs with associated metrics to improve performance. The key is to create a flexible strategy and metrics that can be adjusted as the environment changes. Figure out what works for you and your company, you might have to tweak some things along the way, but I’m sure in the end all that hard work will pay off!
Some of the best practices in inventory optimization can help improve service, reduce inventory levels, and meet organization-wide goals. Doing so will drive improvement throughout the entire supply chain and in all process areas in the business.
Check out Verusen online!
Disclosure of Material Connection: This is a "sponsored post." The company who sponsored it compensated me via a cash payment, gift, or something else of value to write it. Regardless, I only recommend products or services I use personally and believe will be good for my readers. I am disclosing this in accordance with the Federal Trade Commission's 16 CFR, Part 255: "Guides Concerning the Use of Endorsements and Testimonials in Advertising."