“We finally have full transparency of what we have, so we can make fact-based decisions on a weekly basis.”
– Head of Supply Chain, Automotive manufacturer
Inventory Evaluation
Do you find it difficult to know how close to optimal your inventory really is, or how you can get closer to optimal? Do you have optimization tools that are difficult to use or which give results you know to be wrong, but you’re not sure why?
nVentic’s Inventory Evaluation measures how close to optimal your inventories are, classifies them and provides key insights into how to improve.
How does it work?
Do you find it difficult to know how close to optimal your inventory really is, or how you can get closer to optimal? Do you have optimization tools that are difficult to use or which give results you know to be wrong, but you’re not sure why?
nVentic’s Inventory Evaluation measures how close to optimal your inventories are, classifies them and provides key insights into how to improve.
It transforms the data and performs a range of statistical algorithms. It considers every transaction and every item you stock to develop an analysis of how much inventory you have compared to optimal levels. The Inventory Evaluation also classifies your data in multiple ways to support key inventory management decisions.
It provides the outputs to you in both dashboard and workbook formats, so that you can easily work with them. It comes with a User Guide so that the powerful analytics can be understood and trusted to deliver concrete improvements.
The Inventory Evaluation is available as a subscription-based Software as a Service (SaaS), so that you can refresh it regularly to help drive inventory performance. Because it works with standard reports from your systems, but is not integrated with them, it can be set up and maintained without lengthy or expensive system integrations.
The Inventory Evaluation allows you to:
- Quickly identify which items are overstocked and which are understocked – and by how much
- Understand how close to optimal levels you are overall and set targets
- Quickly filter and prioritise all items based on shortage risk, reduction potential, or a range of other criteria
- Identify and quantify excess and obsolete inventory, with an early warning of inventory beginning to go obsolete
- Identify and address data quality issues
- Establish key planning parameters such as order quantity or safety stock
- Segment your inventories based on variability, intermittence, growth/decline, and other qualities of relevance to setting inventory policy
Take a closer look
nVentic’s clients have been taking advantage of the Inventory Evaluation for over 10 years. The identified improvement potential is usually in the range of a 20-50% reduction in inventories while maintaining or improving service levels. Most can achieve a 10% improvement within a few months of starting to use the Inventory Evaluation.