Ongoing inventory optimization is generating significant interest

At the “Logistics Plus” logistics conference held in Mönchengladbach in June, ebp-consulting, together with a client, presented a tool-based methodology in which dynamic inventory optimization is performed based on monthly rolling forecast and demand figures from sales. Systematically , the MRP parameters are updated using the customer-specific tool, and order proposals are determined, as well as the readjustment of reorder points per item or item group. Current inventory levels of finished goods (per SKU or item per warehouse location) are taken into account just as much as semi-finished goods and raw material inventories.

The topic met with strong interest among the participants of the Plus Session. On the one hand, continuous inventory optimization can free up capital by preventing the stockpiling of unnecessary inventory; on the other hand, it reduces warehouse space requirements as well as the average storage duration. As a further benefit, so-called slow-moving items are identified, and excessive safety stock levels for slow-moving items that could become dead stock are identified early and avoided.

As part of the consulting project, ebp-consulting utilized its own toolset for data analysis and the development of an optimal, customer-specific solution that could be adapted and configured for other use cases at any time.