There are a multitude of ways to approach challenges resulting from inaccurate, inefficient inventory planning and forecasting. To guarantee immediate success with clear strategies, you should focus on deploying adequate inventory by optimizing the two key levers in inventory management.
- First, working stock needs to be optimized for covering predictable demand.
- Second, a suitable safety stock needs to be created that is able to absorb demand variability.
Considering those two responses, success is guaranteed if they are approached and implemented correctly.
The basis for the two response strategies evidently lies in anticipating customer demand. You can achieve such predictions accurately while being cost-effective by maximizing the value of your data. The key here is the application of retail sciences that draw from machine learning, artificial intelligence and decision science disciplines.
For that reason, aXialyze draws on Machine Learning-based Forecasting and Inventory Optimization that allows you to know the optimal stock level for each SKU. Thus you will always be confident to stock the products your customers really want.
Unlocking the value of these innovative tools creates a new capability to combine flexibility with accuracy. Through a higher readiness to deliver you are able to react more flexibly to changes in customer demand while decreasing your safety stocks. Hence your business will accelerate as it can now consequently align with the customer needs while achieving significant overall inventory reduction.