Replenishment Planning & Optimization (RPO) Improves Ordering Patterns

Speaking of complexity: How are you managing the "total cost of supply"?

Transportation, inventory carrying costs, handling, storage, administration, and obsolescence costs must be simultaneously considered and optimized in conjunction with supplier pricing events, uncertain lead times, transportation alternatives, uncertain demand forecasts, and customer promotions.

Definitely not the kind of challenge you want to tackle with just back-of-the-envelope "guesstimates."  Instead, by using a replenishment planning solution, you can take the lead in your industry.

With the SmartOps Replenishment Planning & Optimization (RPO) solution, you can optimize total net landed costs to determine the best ordering patterns and quantities. And, in classic SmartOps manner, you can achieve all of this without compromising customer service levels.

Benefits

• Reduces inventory, logistics, and operating costs. Improves performance and lower total costs of goods sold by allowing supply and logistics planners to understand, visualize, and execute against optimal planning decisions for inbound supply and logistics management.
• Increases planner productivity and consistency through an advanced, standardized planning process across groups.
• Aligns organizational incentives. Each business unit and planner can be measured and rewarded based on performance against total costs.
• Total inventory carrying costs can be reduced and made more efficient.

Key Capabilities

• Calculates the lowest total cost solution for multi-item order quantities and frequencies by considering costs such as transportation, holding, warehousing, purchasing, and administrative.
• Uses existing data from a company's demand and supply planning systems to optimize net landed costs.
• Incorporates a stochastic optimization engine to accommodate and manage supply and demand uncertainties and multistage complexities. Uses time-varying inputs to produce time-varying demand and item cost outputs.
• Complements existing planning and execution systems by providing key operating targets against which these systems can execute.
• Scenario assessment and "what-if" analyses let planners run different optimization scenarios to quantify the costs, risks, and benefits of planning decisions on the entire supply network.