The right mix of total supply chain cost involves multiple trade offs. Oii models all the potential set-ups and their underlying cost profiles to determine the optimal. It does this using a concept called SMSpace™ a multi dimensional virtual hologram where all potential future supply chains for a particular network are built, costed and compared.
By making supply chain costs transparent it enables greater understanding of how the planning set up drives costs and ensures that the supply chain is configured to maximise profitability and service.
Holding inventory is not a bad thing. However having too much stock or not enough definitely is. “Like the porridge in the three bears story, the inventory needs to be just right”, Oii ensures that the organisation holds the correct level of inventory across the end-to-end supply chain network and that stock is held in the right location and form to maximise service and minimise costs. Cont…
Artificial Intelligence enables a new level of capability to analyse patterns in data and develop strategies to respond to latent and emerging supply chain risk. Through “listening to the data” and predicting new trends in variability Oii is able to configure the planning systems to deliver your commercial plans and meet your desired service levels whilst minimising overall risk.
When the supply chain is configured in a suboptimal way this results in issues being propagated throughout the network. This in turn leads to service failures, inefficient plans and constant reactive interventions. This all costs. Oii drives pro-activity by modelling the right supply chain set up; reducing issues and enabling faster better decisions and streamlined performance.
Through identifying the optimal E2E inventory levels and concurrent analysis of data and variability trends the tool proactively ensures that the right stock levels are held and waste is reduced. Shelf life constraints are a key input to the stock modelling process ensuring that this is a determinant of what is held and where.