SAP Enterprise Inventory Optimization Application by SmartOps: Product Demo

Find out how the SAP Enterprise Inventory Optimization application by SmartOps can help you develop a comprehensive inventory deployment solution, coordinate inventory across all stages of the supply network, set inventory targets, and determine reorder points for supply planning.

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  • http://global.sap.com/demos/mmov/demos/sap-enterprise-inventory-optimization-application-by-smartops-improving-inventory-use-across-the-supply-network-demo-us.mp4
    • SAP Enterprise Inventory Optimization application by SmartOps: Improving inventory use across the supply network In this demo, you'll see how SAP Enterprise Inventory Optimization can help you: Develop a comprehensive inventory deployment solution, coordinate inventory across all stages of the supply network, set inventory targets, determine reorder points for supply planning, determine an optimum inventory profile, and benefit from inventory optimization In this example, I'm vice president of operations at General Company. I use SAP BusinessObjects software to check operations performance. I see that supply chain performance has degraded since last year, has not met corporate objectives, and is lagging compared with peers in the industry. I find that inventory turns and customer service levels are lower than desired. And, I see that costs for expediting and obsolescence are higher than desired. So, I task my supply chain director to develop a comprehensive solution to help General achieve the proper deployment of inventory working capital, achieve the desired customer service objectives, and control other supply chain expenses. In this example, I’m the director of supply chain at General Company. I use SAP Enterprise Inventory Optimization to coordinate inventory across all stages of the supply network, to achieve desired customer service levels, and to control our working capital investment. SAP Enterprise Inventory Optimization helps me understand how inventory is used across all the stages of the supply chain. My team uses the software to set targets that coordinate the proper buffering for complexities and uncertainties associated with each item and location during every time period in the planning horizon. These targets are then fed into the planning solution. In this example, I’m a manufacturing planner at General Company. I need inventory targets that account for the lead-time variability associated with raw material purchases. I want the targets to account for the frozen windows associated with manufacturing processes, batch sizes, and the reliability of manufacturing processes as driven by my company’s ERP solution. I also need the inventory targets to account for the time varying bills of material relationships. With SAP Enterprise Inventory Optimization, I can track the effectivity dates associated with my bill of materials. I use the resulting time-phased reorder points as inventory targets in my manufacturing requirements planning processes. In this example, I’m a distribution planner at General Company. I need inventory targets that properly account for forecast error and help me manage both slow- and fast-moving inventory items. SAP Enterprise Inventory Optimization helps me meet the high service level that our customers demand by characterizing forecast error, bias, and intermittency for every item, location, and customer in the supply chain. I use the time-phased safety stock targets generated in SAP Enterprise Inventory Optimization as inputs for my supply planning processes. The software helps me to meet service-level targets at a minimum cost. In this example, I’m the director of sales inventory and operations planning at General Company. I use SAP Enterprise Inventory Optimization to match demand forecasts with supply constraints to determine the optimum inventory profile for the entire supply chain. I can shift my inventory across the supply chain between stages to lower total overall costs and appropriately buff
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