Optimizing critical components using key solutions within Inventory Management processes

In recent times, Inventory Optimization is one of the most critical components of Supply Chain Management

Many Industries like Steel, Petrochemical, Cement, Oil & Gas, etc., are struggling to control inventory levels while managing customer demands across multiple channels. Having an inventory management system that provides excellent inventory accuracy is necessary to remain competitive. Businesses that don't keep a careful eye on their inventory and stock will find a lot of problems. They will have customers placing orders that can't be filled. They may misplace stock if they aren't tracking it properly. These risks can be eliminated when using a quality inventory management tool to ensure inventory accuracy.

Inventory Optimization tool is a powerful, PiLog Cloud-based integrated platform that allows businesses real-time visibility of accurate inventory information. It empowers small and medium enterprises to optimize their operations to handle inventory tracking, order management, and stock control.



Identifying symptoms of inventory management problems that most people face

  • Are inventory planners need to organize high priority items which are aligned to customer requirement?
  • Willing to secure economy through efficient materials management but due to lack of planning is it not possible?
  • Identifying the dead stock becoming anxious?
  • Unable to determine the right allocation of storage based on items popularity?
  • The average stay of goods in inventory unidentified?
  • Want to know about the no-consumption value?
  • Do you want to reduce stock-outs?
  • Avoiding the stoppage of production is still a faraway concern?
  • Facing critical issues while understanding which items are very Critical or Vital?

Key Solutions

  • Qualified master data for customers, vendors, materials, and services and provides visibility in Partner Performance, Inventory, and Spend.
  • SOPs, Strategy Inventory, Sourcing, and Business Partner
  • Sourcing projects and contracts that enable quality, quantity, and value with Automating Inventory Optimization
  • Business Partner Life Cycle Management covers the 360-degree view alignment in collaboration and Performance management with Continual Monitoring, reporting, and control.
  • You can categorize services and commodities. And machine learning enables real-time spending management.AI can predict future demand and sourcing.
  • Execution Optimization of Sourcing Projects and Implements fully proofed and controlled bid evaluation systems and Smart Contracts
  • Automating repetitive procurement processes, Digital Secure Payments and Improve Internal Audits and Controls

PiLog's low investment cost analysis will allow quick wins in business transformations and digitalization.

Materials Criticality

Material Criticality = f (ABC - Spend YoY, FMSN - Pattern on consumption YoY, XYZ - Inventory Hoarding,
HML - High Medium Low, VED - Criticality and Impact etc.)

Data Health Assessment

Qualitative data management against standards and provisional reporting.

Assessment on quality dimensions - Completeness, Accuracy, Traceability, Consistency, Timeliness, Availability, and Validity.

Process Maturity Model

Supply Chain (S2P) Maturity = f (cost of procurement; contract compliance; effective supplier management;
standards compliance to safety, security, quality; operational efficiencies, etc.)
The weights and factoring of parameters depends upon the organization, its industry segment, and the S2P category



Key Benefits:

  • Better control over high-value inventory improves availability, reduces losses and costs
  • Fewer stock outs resulting in improved production efficiency resulting in more reliable cycle time and improved customer satisfaction
  • An easy way to find dead stock and reduce its accumulation in the inventory
  • A fantastic technique to find the active products in the inventory and also if you carry the analysis regularly you can see the trends shifting from one product to another
  • It determines the criticality of an item and its effect on production and other services
  • It provides a quick snapshot of what's going on and what needs to be ordered in inventory items
  • It protects from unexpected circumstances, like disruptions in supply or sudden spikes in demand
  • It allows a smooth inventory flow with no halts in between which builds on the inventory discipline of the business
  • It helps the business to make appropriate decisions by helping to track the entire procurement procedure
  • It keeps customers happy and optimize the inventory levels

Outcomes

  • Reduce the pricing YoY by 15% A, B, C (Service Criticality)
  • Reduce invoicing errors to less than 5%
  • >95% Quality meeting PO expectations
  • 100% Delivery Quality Compliance
  • >98% Order Confirmation

Nazima Ershad,
Program Manager since 2007 in PiLog.

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