OMSAN LOJİSTİK

Information Systems to Inventory Management Inventory Planning and Management Latin America Logistics Center Logistics Management Series -

Agenda Planning vs. Control Forecasting Fill Rate Planning Replenishment Planning Optimisation Supply Chain Management

Planning vs. Control Planning Management Execution Monitoring

Inventory Control Fundamentals for Inventory Planning How Many do I have in Stock? –By Item –By Position Accuracy is Critical –Key Performance Indicators –% Accuracy by % de Positions

Demand Forecast Critical for Inventory Planning Question: How Many will we sale? –By Item –By Period Planning Horizon Coverage Optimal Review Intervals Key Performance Indicators in Demand Forecast

Forecast

Fill Rate Planning How Many in Stock to achieve the target by fill rate & ROI By Item, by Position, by Period Stock Cycles Safety Stock Stocks Building

Inventory Management in Time

Stock of the Replenishment Cycle Is the Stock that results from the difference between the replenishment quantities and the quantities of the demand orders

Safety Stock Planned Inventory to fulfil demand overloads during lead time

Building Inventory Planned Inventory to accumulate stock before the demand season Generally for periods of time in which demand exceeds production capacity

Replenishment Planning When does Inventory should be replenished? How many units? From which location? Planning Scope –Reorder Points –Distribution Requirements Planning (DRP) –Constrained Optimisation

Replenishment Planning Customer DC Customer DC Plant DC Customer DC

Constrained Optimisation Develop a plan that recognises the business constraints Capacity and Sequence of the Production Lines Vehicle Capacity and Transportation Costs Warehousing Capacity Inventory Carrying Cost Customer Prioritisation Business Performance Optimisation –Cost Minimisation & Revenues Maximisation

Constrained Optimisation Simultaneously consider all SKUs that share Constraints –Within the Business –Between Business Requires Advanced Mathematical Techniques of Optimisation –Linear Programming –Artificial Intelligence Techniques

Supply Management Inventory Management and Replenishment through Supply Chain Business More Acronyms... –QR - Quick Response –ECR - Efficient Consumer Response –VMI - Vendor Managed Inventory –CPFR - Collaborative Planning, Forecasting & Replenishment

QR, ECR, VMI The Supplier is Responsible for Inventory Planning and Replenishment in the POS Usually occurs between big suppliers and customers Requires EDI or Electronic Data Batch Oriented, is not interactive

Local User Internet/Extranet Customer, Supplier, Remote User Forecast & Replenishment Planning Reviews and Confirmation Internet Collaborative Planning

Case Study - Heineken USA HUSA is the only importer of Heineken to USA HUSA sales 150 SKUs to 450 distributors No Production Facilities in USA – only Marketing, Sales and Distribution

Product and Information Flow HUSA Brewery Distributors Orders Product

Objectives Reduce order lead time Provide to the Brewery better product forecast Improve Service Levels to and from distributors Improve flow of information of marketing with distributors

HOPS Characteristics Gathers Sales and Stocks Data Delivers to the Distributor a Forecast for Review and Approval Delivers to the Distributor an Inventory plan. Allows reviews of parameters and rules Delivers to the Distributor a suggested order –Based on forecast, targets & constraints Real Time System

Information Flow HUSA Brewery Distributors Confirmed Orders, Sales & Forecasts, Inventory Position Distributors Orders & Aggregate Forecast Suggested Orders, Inventory, Forecasts

Heineken Operational Planning System

Outcomes Better achievement of sales targets Dramatically improved forecasts sent to the Brewery Sales person dismissal from taking orders Four weeks reduction in customer order cycles Sales Increase!!!

Software for Inventory Management Manugistics Numetrix i2 FYI Planner Lucas-Baer LPA Logility Information Concepts Inc.