Inventory optimization

Optimize your inventory investment

Create decision-centric inventory target plans that support sales inventory and operations planning and meet budgets with AI-generated explanations.

Screenshot of planner workspace displaying target working capital, forecast accuracy, and finished goods inventory.
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Create a true SI&OP plan that meets financial objectives

Align medium- to long-range goals, inventory positioning, and annual operating and budget planning.

Develop item-level inventory targets

Define short- to medium-range inventory targets at the item level across the network and bill of materials so that operational supply planning functions can accurately fulfill quantities.

Empower planners with decision-making visibility

Make smarter and faster decisions with AI-assisted inventory optimization results analysis.

Gain insight into the outcomes of inventory optimization runs

An easy-to-understand AI-assisted analysis explains the output of the planning runs and affected KPIs by using built-in analytics.

Make more informed decisions and refine inventory strategies effectively

Swiftly adjust the inventory optimizer logic and model. Evaluate the drivers of stock levels and take targeted inventory-reduction measures.

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Hedge against variability

Mitigate the impact of variabilities on inventory target levels.

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Monitor all types of variabilities

Balance variabilities—such as demand via forecast error, suppliers via lead time, and production via schedule attainment—with desired service levels to determine an effective inventory plan.

Confidently invest your working capital

Ensure the inventory targets are accurate and not over-buffered with excess stock.

 

 

Optimize inventory across the entire network

Right-size your inventory and reduce obsolescence.

Multistage optimization

Calculate inventory targets while accounting for network interdependencies.

Right-place, right-time, right-amount inventory strategy

Create an inventory plan capable of spanning the full bill of materials and entire supply chain network.

Accurate demand projections

Stock correct products and quantities, preventing excess inventory that can become obsolete while avoiding missed customer orders. The result is higher service levels without unnecessary capital tied up in surplus stock.

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Explore all capabilities of integrated business planning

Sales and operations planning

Unify financial and operational stakeholders in one S&OP process to align inventory, service levels, and profitability.

Demand planning

Automate the statistical forecasting process and apply machine learning algorithms to predict demand.

Response and supply planning

Generate feasible supply plans to meet demand with accurate inventory targets and efficient capacity utilization.

Supply chain visibility

Gain end-to-end visibility of your supply chain and detect potential disruptions with SAP Supply Chain Control Tower.

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