For most wholesale distribution businesses, the best way to control costs is tight inventory management. This can be challenging for global operations.
IBS software helps you find the optimum inventory position for your business, even if you have warehouses in many locations. It allows you to analyze forecasts and run simulations based on real inventory and sales information and plan the supply side of your business.
It is truly adaptable, offering a number of planning technologies:
- Distribution Requirement Planning (DRP).
- Reorder Point (ROP) replenishment planning.
- Cover-time planning.
- Balanced production planning.
Global supply planning
In order to achieve optimal efficiency and high service level we recommend mixing and matching different planning methods according to product segment.
ROP replenishment triggers orders for new stock when inventory falls to a set level. This is calculated based on the lead-time of each item and includes a safety margin. It is a straightforward system suited to planning high-volume, low value products.
DRP enables you to analyze future requirements and order stock based on actual demand for products. It pays for itself when items are expensive or have long lead-times. With IBS Supply Planning, you can factor in stocks held in different locations around the world or by other companies in your group. You can then reduce the inventory of expensive items. The risk that you will not be able to supply a customer is reduced because you know that stock can be transferred from other locations.
Information management
Because IBS Supply Planning is integrated within the Enterprise 6.0 Suite, it can recommend new and rescheduled orders automatically. It enables you to share planning information. This means, for example, that sales can see when new inventory will arrive as well as what is already in stock. They can talk with customers about what is actually available. They can give reliable timescales and costs because of the robust planning which created the figures.
Information flows in both directions, since effective planning needs data about inventory and sales. IBS Supply Planning runs together with IBS Inventory Control and IBS Sales and Operations Planning. It is most effective, if you are also planning future demand for your products and services so we recommend you run IBS Supply Planning in parallel with IBS Demand Planning and IBS Planner View.
Together, these modules give you a comprehensive forecasting and planning solution. They drive value from inventory management and keep your customers happy with fast and accurate responses.