Then the plans that drive the E2E supply chain operation will be incorrect and this leads to service failures and the need for expedites and fire fighting to address shortfalls.
Oii removes the dependence on being able to accurately predict the future by applying a new probabilistic planning paradigm to the management of network variability.
Our software uses AI and advanced modelling to determine the RIGHT supply chain set-up to cope with current and future risk by identifying the right response to meet your service goals in the most cost effective way. By simulating future risk scenarios the tool determines what actions are needed NOW to respond to disruption in the future giving you the resilience to meet your service goals without intervention or expedites.
To get this right requires an understanding of the sales v cost profile of each item in the portfolio.
The Oii tool models ACTIVITY costs at item level TRANSPARENT facilitating visibility of how each item contributes to the profitability of the business.
The software builds fundamentally improved cost structure from item level upwards delivering cost reductions and ensuring margins are maximised.
Getting this wrong results in service issues or cash unnecessarily tied up in stock. Oii models optimal E2E multi echelon inventory strategies by simulating alternative future strategies and their probabilistic outcomes.
It identifies the right inventory holding to meet service goals whilst avoiding waste and the tool balances the cost of inventory with the need to meet sales targets. It gives item level ACTIONABLE recommendations for every SKU in your portfolio.
This means that cost profiles are sub optimal, hitting the bottom line of the business in a highly negative way. Oii ensures the underlying cost model is right for every item, making activity based costing transparent and trade offs visible across the entire portfolio.
The software builds fundamentally improved cost structure from item level upwards delivering cost reductions and ensuring margins are maximised.
The Oii tool utilises shelf life data to ensure that stock levels consider the risk of obsolescence thereby minimizing the risk of write offs in the modelling calculation
It builds sustainability into your supply chain configuration and flags areas where intervention is needed to minimise the cost of your network to the environment.
