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Inventory Optimization Decision Support

Subject Area: Inventory Optimization Decision Support

Inventory Optimization Decision Support

With spare parts inventory, optimization means finding the best balance between the cost of holding inventory and the cost of NOT holding inventory.

 
Put another way, it is the balance between the cost of spending money to hold a spare part in inventory and the cost of additional down time incurred if the part is not available.

That is easy to say but hard to achieve!

The problem is that there are a number of change-related factors that can lead to holding an inappropriate level of inventory:

  1. The initial quantity decision was based on a ‘best guess’
  2. Supply chain changes – especially since the pandemic!
  3. Changes in market needs and equipment usage

Each of these issues can result in your company holding more (or less) inventory of a part than is appropriate.

This either wastes money (through over investment) or increases risk (through under investment).

The training we provide at SparePartsKnowHow.com will help you understand these issues (and the other system and structural issues you face) what is often need, in addition, is inventory optimization and decision support software.
 


Our Inventory Optimization and Decision Support Solution

 
There is, however, one more problem that most people don’t recognize.

Most of the so-called optimization software uses an algorithm approach that is based on retail and wholesale inventory management.

What the vendors of this software don’t understand is that this doesn’t work with spare parts inventory.

That’s why our solution doesn’t use an algorithm, it uses a Monte Carlo simulation. (I am not going to explain the detail of that here but am happy to talk about it.)

This approach takes the guesswork out of determining the minimal amount of inventory required to achieve defined service levels; thus, eliminating inventory imbalances and quantifying risk.

And isn’t that what you really want?
 


Software Solutions Can be Complex and Cumbersome But Ours Isn’t

 
Most people have faced the nightmare of implementing software. Don’t get me started on this with large ERP solutions!

Our software isn’t like that.

  • It is cloud based – no fussy installation.
  • Simple to learn – after some basic training.
  • Quick to provide results – seconds not minutes or hours.
  • Easy to use – ideal as a decision support tool.
  • Scalable – start with one location and scale up as needed.
  • Low cost – you will be surprised at how it compares.

You don’t even need to include all your spare parts. I mean, why pay for analyzing items of very low value?

Just include the important and/or expensive items.

Our solution is very flexible yet fully functional – incorporating all of the required supply chain factors to accurately determine optimal inventory levels.
 


Right Size with Our Inventory Optimization and Decision Support Tool

 
You know what happens when you don’t have the right tools – excess inventory and higher risk.

With the right inventory optimization and decision support tools you can address this and ‘right size’ your inventory.
 


Contact Us for a Confidential Discussion

 
Contact us to discuss your plans for implementing an inventory optimization decision support tool.

 
 
 

30 Day Program

Discover the 8 strategies to achieve your spare parts inventory management goals Read more...

Basic Training

Perfect entry level for people new to spare parts management.

Also suitable for those with experience who want to refresh or confirm their expertise. Read more...

Advanced Spare Parts Management Course

For those who need to go deeper and broader.

Ideal if your goal is to update your company’s approach and systems for spare parts management.
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Pro Level Membership

With access to all our key resources, a Pro Level membership will equip you with the know-how and skills to become a ‘thought leader’ in spare parts inventory management.
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Online Boot Camp

A live, online, interactive, team-based delivery of our Basic Training course designed to provide your team with a common understanding of the basics of spare parts inventory management. Read more...

Software and Services

At SparePartsKnowHow.com we can help with more than just spare parts management training.

We also have access to software and services that are developed to help with spare parts inventory management.
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