October 4, 2020
Case Study – Integration & Optimisation
This customer owns, operates and maintains a regions electricity distribution network, connecting 2.4 million properties, and more than 5 million…
Accurate demand forecastingto ensure optimum stock levels
At TVS SCS, Demand Forecasting and Inventory Planning is done religiously to meet stringent availability targets with the minimum possible inventory levels. Our inventory management solutions ensure that you hold the right amount of stock to meet the customers’ demands. This is based on an analysis of historical trends, events and patterns.
TVS SCS Demand Forecasting Planning application (Msys. DFP) increases the availability of products while achieving lower inventory levels. This, in turn, will enhance customer service and experience.
Our years of experience in managing complex supply chains with highly skilled practitioners help manage the system on an exception management basis. This means that whilst our inventory management system automatically identifies trends and seasonality in the data; our experts identify the outliers with ease. The bespoke algorithms embedded in the demand forecasting system manage different inventory aspects, including slow-moving items, lifecycle planning and asset applicability.
When integrated with an Enterprise Resource Planning application (Msys.ERP), our inventory management software recommends and automates purchase orders for products based on the agreed frequency of the material requirements planning. This ensures the optimum inventory level and takes into account any variation seen in that period via demand forecasting.
The best inventory management software is often the one that makes your supply chain economical and efficient. Our inventory management solution helps optimise your stock levels by constantly focussing on demand forecasting and consequently helps you derive cost-saving benefits.
Furthermore, the system efficiently handles product changes. The resulting benefits of demand forecasting are decreased obsolete or superseded stock, reduced bottom-line write-offs, and increased profit.
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600 ,000
Live SKUs automatically handled by DFP
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45 ,000
Actively planned SKUs
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£ 50 ,000,000
Inventory planned by TVS SCS
The benefits of choosing TVS SCS for this service:
- Experience - Extensive experience in managing complex supply chain requirements.
- Maximised Availability - Accurately forecasting demand levels based on historical data, seasonal trends and known events.
- Optimised Inventory - Ordering enough stock to meet demand.
- Cost Optimisation - Through reducing obsolete and superseded stock.
- Automation - Automation of forecasting and ordering processes.
- Scalable - Scalable to coincide with business growth.
- Agility - Creating a more agile supply chain model.
- Resilience - Through analysing accurate data and making intelligent business decisions.
- Visibility - Gives you the visibility of expected stock levels and estimated spend.
Why TVS SCS?
Years Of Excellence In Trading And Technology
Pivotal Supply Chain Solutions To Top Companies In The World
Warehouse Space, Labour & Technology Anywhere It’s Needed
Customised Solutions With AI Integrations And Machine Learning
FAQs
What does supply chain Inventory Management mean?
Inventory planning within a supply chain involves managing the demand and supply of a company’s products. This starts right from an order being placed to getting it delivered.
The process includes:
- Correctly timing product orders.
- Accounting for supplier lead time.
- Analysing historical data.
- Calculating demand seasonality and trends, and so forth.
TVS SCS helps manage these processes through a solution that integrates both software and experience in managing complex supply chains.
How do I know I need a supply chain Inventory Management Solution?
An inventory management solution is often needed for a supply chain when you realise that your company is unable to monitor all the elements of their inventory effectively. If products are not ordered at the optimal time, it could lead to the late arrival of stock. It would thereby affect availability targets and damage the company’s service levels. Likewise, sometimes stock is ordered too far in advance or over ordered as ‘safety stock’. This may result in obsolescent or superseded stock and also impact your profitability.
Another sign that your company requires an inventory management solution is when considerable human resource is required to forecast and plan demand manually. This often entails cumbersome and potentially error-prone spreadsheets developed in-house over time. Hence, an inventory management solution is needed to optimise stock levels, to minimise obsolescence and maximise availability.
What is Demand Forecast Planning, and why is it good to have inventory management software?
Demand forecast planning is a solution to reduce client inventory and provide substantial improvements in product availability. An inventory management software is necessary for demand forecasting because it stores tons of data that otherwise would be hard to keep on record. It can take data and run it through a statistical algorithm that will help predict future stock demands. Importantly, it conducts scenario planning by considering the unforeseeable and uncontrollable variables that may affect stock availability.
TVS SCS demand forecast planning application is a tool that uses various demand data (e.g. trends, known events, seasonality and historical usage) to derive time-based forecasts and safety stock.
How will I benefit from having a Supply Chain Inventory Management Solution?
An inventory management solution provides a range of benefits to your business and supply chain operations.
The primary benefits are
- Optimised inventory and its accurate planning
- Controlled obsolescent and superseded stock
- Data availability for managing and planning the workload
The allied benefits include :
- Added business agility, resilience and visibility
- First-time right-results
- Helps cope with unforeseen events
- Boosts customer growth
- Helps plan work seamlessly and automatically
- Improves service levels
- Increases product availability
- Significant growth in sales
- Cost-saving on your bottom line
What are the challenges you may see in implementing Inventory Management software?
Typically the biggest challenges in implementing inventory management software into your business are system integration, data structuring and employee training. Further, the time and cost needed to get an inventory management system running can sometimes outweigh the benefits of actually taking up this type of solution.
We have seen this through our extensive experience in integrating software in our own and third-party applications. However, once implemented and the system in place, it can massively improve your business operations.
Our inventory planning system is designed to integrate seamlessly with your IT infrastructure and to get the most out of your package. Hence, the process of onboarding new clients is refined and improved over time through the significant number of implementations completed.
Is TVS SCS’ Inventory Management solution standalone, or is it be incorporated into a broader supply chain solution?
Inventory management solution is comprehensive in nature. The software often needs to be integrated into an Enterprise Resource Planning (ERP) system to run efficiently and deliver the planning elements for the material requirements.
A broader solution could see multiple integrations. For instance, you can expect to see inventory management software integrate into supplier information portals, ERP systems, product data management and data analytics dashboards. Further, for our Demand Forecast Planning solution to be implemented into your business, some IT development is required, thus making it part of a broader solution.
How do you diagnose your inventory management processes correctly to ensure they align with your business goals?
Several considerations need to be taken into account to ensure that the inventory in your supply chain is kept up-to-date and accurate. Usually, processes need to be reviewed and updated every 3-6 months to ensure they are correctly managed and scaled to the demand flowing through your business.
How does supply chain inventory management affect cash flow?
Successfully managing inventory activities correlates directly to improved cash flow. When a purchase is made, it directly affects cash flow as an expense. Further, if products are over-ordered and are sitting in your warehouse, there is the risk of becoming obsolete or superseded. Hence, accurately forecasting the optimal stock will translate to a healthy bottom line.
Gain from TVS SCS’s robust supply chain team and the best inventory management software integrated into your system. We help manage the receipt of a product (on time and in full) to ensure product availability and reduce the working capital in inventory.
How does inventory management software help overcome challenges in the supply chain?
Inventory management software can overcome many challenges in the supply chain. These include maximising product availability and ensuring a high level of service delivery to customers. Consequently, this improves profitability as customers see you as a reliable source for their requirements.
An effective inventory management solution can streamline ordering processes and help analyse demand trends. This allows for ordering stock at the correct amount and at the right time while keeping inventory to a minimum.
How do I get in touch to discuss inventory Management?
Please fill out the contact us form below to discuss your requirements and learn about our offerings. We will be in touch to help you improve your business.
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