Add know future demand to increase availability and protect inventory investments.
All known future demand can be added as an Event. Events Planning is particularly suitable for future planned occurrences, e.g. promotions, large projects.
Advantages of Events Planning:
Events are automatically added to the demand forecast.
Replenishment recommendations are auto-adjusted.
When plans change or events are delayed rescheduling can be done with a click and forecast and replenishment recommendations are instantly updated.
Event planning does not add to historical demand (transactional history), protecting against unnecessary stock build-ups for known demand.
Events Planning can be automated.
ICS can identify parts classifying for event planning.
Special Terms of Trade
Make sure trade discounts are utilised.
If you have suppliers which offer discount or incentive schemes for certain products or over a range of products, those schemes can be configured in ICS to guarantee that purchasers are taking advantage of them.
At order review purchaser are alerted of an existing e.g. volume discounts, if the current order fails to meet the criteria, guaranteeing informed decision making at time of purchase.
Rules are easily configured and maintained and can reflect any discount or incentive scheme.
Supplier Performance Monitoring and Reporting
ICS' risk algorithm monitors and assess each and every purchase order transaction. Each transaction's actual lead time is recorded and compared to the expected lead time. Variances in lead time are evaluated and ICS is computing a unique risk profile for each SKU at each location within the network.
The data is processed into aggregated and easy to run reports providing full visibility of the actual performance of a supplier. This provides accurate, hard data for Supplier Performance Reviews and enables immediate action in cases of supplier short-commings.
Lost Sales Tracking
Automated and forward-looking.
Automatic recognition and recording of sales lost due to non-availability of an item.
Provides easy Lost Sales Reporting.
Lost Sales are factored in when recommending future replenishment orders reducing the risk of reoccurring stock-outs.
Increase the Productivity of System Users.
Workspaces are screens of information. Just like taps in a modern internet browser ICS allows for multiple workspaces to be open. They can display different information and/or reports. Users can toggle between the open workspaces.
Workspaces can also be undocked and arranged across one or several monitors to display an array of information. The workspaces stay connected and if e.g. an item is reviewed on one workspace the other workspaces will auto-refresh and show the related information to the selected item. This way, review tasks like purchase order reviews are significantly faster and decision can be made based on all available information.
Every user can save his/her workspace arrangements to the main menu of ICS for future use. ICS users typically have up to 10 different screen set-ups saved and open them depending on the task at hand (e.g. purchase order review, surplus review).
Risk Modelling Benefits
The reason the ICS system and methodology has been so effective at delivering substantial inventory-related benefits is to be found in the following:
Uniquely, the ICS system logic is based on risk measurement and risk modelling, as well as on risk mitigation through risk-optimized inventory levels and re-order point calculations.
All risk modelling is done at the line-item-by-stocking-location level of granularity and tracked daily for all line-items.
The risk modelling inputs are truly multi-variate and process many more inventory-related risk and service parameters than most, if not all, other systems and approaches. Over- and under-compensation for inventory risk is minimized and inventory portfolios are rebalanced with risk-appropriate stocking and ordering parameters to optimise inventory investment yields.
Granular data is processed into information and displayed as powerful decision support intelligence.
ICS makes sure you'll have the right quantity in stock.
Set Size is a SKU-specific order variable, which ensures for items which are typically sold in multiples (e.g. injectors for 6-cylinder engine) that the stocking quantity does not fall below the set size number to guarantee delivery in full.
The set size function protects against incomplete order fulfillment and protects customer service levels.
Package Quantity is a SKU-specific order variable, which will adjust replenishment recommendations to reflect supplier enforced package quantity order constraints. Unnecessary and reoccurring exception reports at order or receipt are thus avoided. Inventory forecasts reflect the true picture providing reliable information on future cash commitments.
By using a package quantity variable ICS allows also to set preferred internal distribution and replenishment options. ICS can ensure e.g. that package quantity parts are only delivered to the main distribution center but not to satellite locations within the network; thus, limiting excess stock.
ICS also provides detailed reporting on much and where extra stock is carried due to enforced package quantity order constraints.
Handling of OEM imposed Vendor Managed Inventory (VMI)
More and more OEMs move towards imposing Vendor Managed Inventory solutions within their respective networks. ICS can import OEM purchase recommendation and stock level targets. The data is seamlessly integrated into ICS and can be handled and managed within the application following the same processes as for any other inventory and purchases. ICS threfore eliminates the need for a separate process. In addition ICS provides the ability to gauge the OEM's recommendations and if needed can shape recommendations through the usage of future dated orders.