Addressing Inventory Challenges with New Math
In today's volatile business environment, relying on historical averages and standard deviations to calculate cycle and safety stocks is no longer sufficient. The unpredictability in demand and supply chain operations has led to companies overstocking, driving up costs and creating waste. To combat this, Kinaxis offers Probabilistic Multi-Echelon Inventory Optimization (MEIO) by Wahupa. This innovative solution quantifies uncertainty, enabling organizations to optimize inventory levels, enhance service, and reduce costs.
Key Features and Benefits
1. Manage underperforming service models: MEIO helps identify true inventory requirements even for slow-moving parts, improving overall service performance. 2. Differentiated service levels: Not all products require the same stocking levels, allowing for customized service levels without excess inventory. 3. Tailored tools for optimal results: MEIO offers a variety of tools tailored to different industries, maximizing inventory potential. 4. Forecasting the unforecastable: By managing non-normal distributions, MEIO enables accurate demand predictions even for long-tail items. 5. Balancing competing objectives: Achieve the right mix of inventory while balancing service objectives and business goals. 6. Fast ROI: Implementing MEIO quickly frees up working capital, providing a prompt return on investment.
About Wahupa: Embracing Uncertainty for Better Planning
Wahupa specializes in modeling uncertainty in forecasts, plans, and schedules. By embracing uncertainty rather than fighting it, Wahupa's approach leads to increased stability, reduced costs from waste, increased sales and margins, and a shift away from reactive fire-fighting. Visit www.wahupa.com for more information.
Take Action Today!
To unlock the full potential of your inventory and optimize your supply chain's performance, contact Kinaxis to learn more about Probabilistic MEIO by Wahupa. Request a demo to see how this advanced solution can help your organization achieve strategic, financial, and service goals while minimizing waste and maximizing efficiency.