proprietary 2003 data research analysis & consultancy solutions all rights reserved. this is...

PROPRIETARY2003 Data Research Analysis & Consultancy SolutionsAll Rights Reserved.

This is achieved by: Improving availability / reducing stock outs Linking investment to inventory risk Codifying your Inventory management expertise Creating visibility of the health of your inventory Accurate demand forecasts using statistical techniques

DynaStock What is the software about…?

• Exceeding Customer Fulfillment Expectations• Removal of Demand Chain Waste• Reducing Working Capital Investment• Improved Market Share / Increased Sales


What It Can Do: In 2 Weeks DynaStock can provide an effective assessment of your

inventory and management processes. Typical implementations deliver 20-50% inventory reductions while

increasing product availability by 5-10%.

Your Benefits: Increased Customer Satisfaction Increased Availability Additional Pull Through Sales (reduce lost sales multiplier) Reduced Inventory (working capital) Better Control/ Reduce Management Cost (reduced overdue & back orders) Optimization of Space

DynaStockCustomer Satisfaction through Inventory Optimization


Decision Support Software tool that:– Provides a link between strategy and investment

– Incorporates safety stock setting, using all the required inputs.

– Has what-if and scenario modeling capabilities

– Projects the consequences of different inventory investment policies

– Quantifies the investment required for different availability strategies

– Quickly quantifies the causes of inventory– Prioritizes and focuses attention on areas of greatest risk

– Has intuitive user interfaces with drill down capabilities

DynaStockProduct Definition


Investment in Inventory

• Past Sales/Issues• Forecast Demand

• Accuracy of Forecasts

• Lead Times/Reliability• Replenishment Cycles• Target Service Levels

Transaction

Processing

System

Line Item ReplenishmentGenerates

As a consequence

StrategyD

riven

by

End

Res

ult

Driven by Strategy

DynaStock

DynaStockLinking Corporate Strategy and Investment to Line Item Replenishment

disconnected


The formalized Implementation Methodology includes:– Inventory management Process Re-engineering

– Database compilation and setting Parameters

– Consultation, Training and Review meetings which cover the following areas:

• Demand management and planning

• Excess stock management

• Strategic review with scenario modeling

• Order verification and placement

• Performance Tracking, Evaluation and Reporting

DynaStockImplementation Benefits

Increases Customer Satisfaction and Inventory Availability While Reducing Inventory Investment.


DynaStock - FeaturesTournament Forecasting

Forecasts are generated product wise or group wise using the ‘Tournament Forecast’ method (also called Focus Forecasting)Demand forecast is performed for each product using the best fit among numerous mathematical functions like Trend, Seasonality, Moving Averages etc. Planned Demand Promotion can be incorporated by the user into the system generated forecast for overriding predictions.


DynaStockOrder Generation

Vendor, group, class, channel or individual product wise orders are generated taking into account all defined product parameters.‘Fair-Share Algorithm’ is also built into the system wherein the stock available with the Vendor is considered and subsequently the allocation quantity is arrived based on customer weightage.


DynaStockOrder & Schedule Tracking

Product delivery schedules can be monitored and amended. Orders can be tracked. Expected delivery dates and actual allocated quantities can be changed for individual products.


DynaStockProfiling the Health of Your Inventory

Analytical reports are used to monitor the daily progress in re-alignment of stock against optimal inventory profiles



Graphical profiles can be generated to visualize the inventory performance and stock holding patterns



Product group & class wise analyses provide more focus towards revenue generating products


DynaStockDefining Rule Sets

What is Optimal? What is Excess? How are they derived? Analyze, Evaluate and Edit business rules


Stock-out situations

Sudden spikes

DynaStockExecutive Reports

Sales Analysis


Performing an Assessment which will provide: Initial view of:

– Potential stock-outs

– Surplus orders

– Expediting requirements The causes of your inventory A view of the gap and an understanding of the opportunity:

– Investment

– Target service level A Re-engineered Business Process Framework of the Return on Investment Model

DynaStockNext Steps


Return on Investment Model A. Short term Cost Savings

– Excess Inventory identification B. Long term Cost Savings

– Optimal future ordering due to re-engineered business process C. Estimate increase in Service Levels D. Estimate Intangible benefits

– Customer Satisfaction / Sales increase / Fewer Expedite Orders / Manpower Productivity

DynaStockNext Steps

Is?Present Value (A + B + C + D) > $ (Decision Support System)

proprietary 2003 data research analysis & consultancy solutions all rights reserved. this is...

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