Reduce inventory and improve service levels …

A significant cost to manufacturing, distribution and retail organizations is the inventory carried to support customers and sales.  As a matter of fact, inventory is a financial expense that ties up cash and can represent 40-50% of your company’s capital investments.

Right-sizing your inventory without compromising service levels provides a beneficial way to increase your “return on inventory investment.”  But accomplishing this can be challenging if you do not have complete visibility to your products on hand … or the right planning and optimization tools in place for segmenting your inventories and building optimal plans that take demand variance, supply reliability and product obsolescence into consideration.

Silvon Stratum addresses these challenges by allowing businesses to effectively classify their products based on ABC analysis, which can then be used to set inventory targets based on classification schemes and to identify excessive or outdated inventories that need to be addressed. 

The solution enables today’s demand-driven enterprise to accurately plan and optimize inventory based on historical sales, shipment, point-of-sale and other performance data such as trends in inventory turns.  Plus, it provides real-time visibility, performance monitoring and automatic alerts when unexpected variances or occurrences take place. 

With Stratum, managers have the insight they require to make better operational decisions that can ultimately drive down safety stock, reduce lost sales and minimize the costs and time related to inventory management.

The Stratum application used to address this solution area:
Stratum Inventory Performance Management (IPM)