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Inventory optimization

Manage inventory targets across the whole supply chain to better balance risk, inventory investment, and desired customer service levels

Buffer against uncertainty in the supply chain

Optimize your inventory investment to buffer more risk at lower cost. With sophisticated, coordinated inventory planning, you can account for business uncertainty, escalating customer expectations, demand and supply volatility, and other factors that contribute to increasing supply chain complexity and risk to better prepare for disruption in an unpredictable world.

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Balance inventory investment and service levels

Achieve higher levels of customer service without tying up too much working capital in inventory investment. Inventory optimization can help you strike the right balance between inventory and customer service levels, so you can take advantage of sophisticated scenario planning to target your needs with a segmented approach that still meets customer expectations.

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Optimize inventory across a multistage network

Enable coordinated planning across your organization and supply chain to eliminate over-buffering, help ensure service objectives are met, and optimize inventory investment levels. Multistage optimization lets you calculate your inventory targets, while taking interdependencies within the network into account, and go down your bill of materials to calculate inventory levels for finished goods, components, raw materials, and semifinished products.

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Analyze inventory drivers

Gain greater insight by using built-in analytics to visualize your product network and geographic distribution of inventory. Go a step further and uncover the key inputs and outputs responsible for those calculations. With greater visibility, you can evaluate the drivers causing stock levels and take targeted inventory reduction measures.

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.

Forecasting and demand management

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.

Demand-driven replenishment

Use strategic decoupling points and inventory buffers to control the flow of material through the supply chain.

Supply chain visibility

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

Questions? Get in touch!

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