Aberdeen Group Report Highlights The Need For Inventory Optimization To Manage Supply Chain Complexity
Best-in-Class Companies are Five Times More Likely to Adopt Best-of-Breed Multi-Echelon Inventory Optimization
According to Aberdeen Group's latest Analyst Insight Report, "Inventory Optimization Strategies for the Chief Supply Chain Officer," key to managing the growing complexity of today's supply chains, reducing costs and improving customer service levels is the use of best-of-breed inventory optimization software. The report, sponsored by Logility and published by Nari Viswanathan, vice president and principal analyst, Aberdeen Group, found that best-in-class companies were five times more likely to use a best-of-breed solution for their multi-echelon inventory optimization initiative.
In response to global economic pressures such as demand volatility and the need to reduce operating costs, companies are turning to advanced supply chain solutions such as inventory optimization to manage these challenges. A company's reliance on spreadsheets, an ERP or APS solution will place them at a competitive disadvantage without access to the breadth and depth of functionality a true multi-echelon inventory optimization (MEIO) tool provides. The use of these specialized solutions differentiates best-in-class companies from those that Aberdeen defines as either industry average or laggards.
"In the current business climate where companies are sitting on cash, hesitant to hire and facing general uncertainty, an Inventory Optimization project is a very prudent approach to improve working capital and customer service levels," said Nari Viswanathan, vice president and principal analyst, Aberdeen Group. "The advantage of an Inventory Optimization initiative is that it can be done in a multi-phased manner where process changes can be implemented first followed by finished goods inventory optimization and then finally network wide inventory optimization. Companies should be cautious to select a technology approach that can scale to address the organization's most complex multi-echelon inventory network. Additional benefits come when the solution is integrated with the rest of the supply chain software like Demand Planning, Supply Chain Planning, etc."
The report also features an interview with Stanley Black & Decker which, through the use of inventory optimization, was able to reduce inventory on hand and simultaneously improve fill rates. Readers will learn about the challenges the company faced, its process for identifying the need for multi-echelon inventory optimization and the results gained deploying Logility Voyager Solutions Inventory Optimization. In addition, you can view an on-demand webcast with Michael Martin, manager, global supply planning strategy, Stanley Black & Decker where he elaborates on the company's implementation and use of MEIO at http://goo.gl/E0jUh.
"In the current global economy, it is important for companies to identify how to profitably grow, manage demand and supply volatility, and meet increasing customer expectations," said Mike Edenfield, president and CEO, Logility. "As this report indicates, multi-echelon inventory optimization can have a dramatic impact on an organization's supply chain performance and provide the platform needed to meet business and service level objectives for complex supply chains with multiple stages of inventory."
Recognized industry-wide for its rapid implementation, quick ROI, ease-of-use, and ability to solve complex problems, Logility Voyager Solutions is a comprehensive supply chain solution suite which features performance monitoring capabilities to increase supply chain visibility and boost performance in key areas including demand, inventory and replenishment planning, sales and operations planning (S&OP), manufacturing planning and scheduling, supply and inventory optimization, transportation planning and management, and warehouse management.
To download your complimentary copy of this report, please visit: http://goo.gl/AywY4.
About Logility
With more than 1,250 customers worldwide, Logility is a leading provider of collaborative, best-of-breed supply chain solutions that help small, medium, large and Fortune 1000 companies realize substantial bottom-line results in record time. Logility Voyager Solutions is a complete supply chain management solution that features a performance monitoring architecture and provides supply chain visibility; demand, inventory and replenishment planning; Sales and Operations Planning (S&OP); supply and inventory optimization; manufacturing planning and scheduling; transportation planning and management; and warehouse management. Logility customers include McCain Foods, Pernod Ricard, Sigma-Aldrich, and VF Corporation. Logility is a wholly owned subsidiary of American Software, Inc. (NASDAQ: AMSWA). For more information about Logility, call 1-800-762-5207 USA or visit www.logility.com.
SOURCE: Logility