Inventory Forecasting

Making the most of your stock

Reflex Inventory Optimization will help reduce inventory and improve service. Effective supply chain inventory management not only reduces cost, but improves performance in the one area where markets are most demanding today: Customer Service.

Reflex Inventory Optimization monitors demand variability and accounts for the outputs from the demand forecasting software. In this way, it calculates optimum inventory at item level. It also allows the user to model inventory against target service levels and decide how much to invest in stock.

The benefits of effective supply chain inventory management are many:

Improved customer service
Reduced obsolescence
Improved cash control
Balanced stock profile
Reduced stock levels
Reduced warehouse footprint
Improved return on investment

Improved customer service is perhaps the most invaluable benefit of effective supply chain inventory management. The immediate benefits of order fulfillment and improved sales are one thing; the longer term benefits of enhanced reputation and a strengthened brand are quite another. But there are many other benefits that reduce cost, starting with a reduction in written-off stock due to obsolescence. A properly balanced stock profile will allow reduced inventory levels overall, thus reducing the warehouse footprint and associated costs. Even the cost of labour and Mechanical Handling Equipment can be reduced.

Reflex Inventory Optimization outputs are time-phased, calculating the different levels of inventory may be required at different times of year. They include ABC product classification, safety stock, optimum stock, excess stock, and days of supply. Alternate solutions are easily modelled and compared, allowing managers to balance customer service targets against capital investment.

Supported by an effective forecast, Reflex Inventory Optimization provides a rapid return on investment by reduction in stock and consequential benefits. Reflex can be justified on these benefits only, let alone reduced costs and improved service across the supply chain.