Papyrus' Bob Woodburn on the benefits of Inventory Optimization

1. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Webinar 3:
Inventory Management 2.0
Get inspired in how many different ways optimization
improves your inventory management

2. © AIMMS - 2015 Do not copy, cite, or distribute without permission© AIMMS - 2015 Do not copy, cite, or distribute without permission
Bob Woodburn
>Senior VP Supply Chain, Papyrus
>Birling Associates
>Waverley TBS
>Danone

3. Papyrus value chain
With a fine meshed distribution network and effective customer services,
Papyrus contributes with cost and timesaving solutions for both
customers and suppliers
3

4. © AIMMS - 2015 Do not copy, cite, or distribute without permission© AIMMS - 2015 Do not copy, cite, or distribute without permission
Marcel Mourits
> PhD in Supply Chain Network Design
& Operations Research
> Logistics Service Providers
> Retail
> SC & Manufacturing Consulting
> 3 years with AIMMS
Passion for improving decision making

5. © AIMMS - 2015 Do not copy, cite, or distribute without permission
AIMMS…
… offers a new approach to solve critical business problems in typically
four months with our breakthrough technology.

6. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Optimization: the raw power to generate solutions
AIMMS helps you find the ‘Best Set of Actions’ to improve the situation
The Power of Optimization!
> generate multiple sets of actions for various scenarios
> evaluate performance, sensitivity, robustness
> always the best fit answer to your requirements and objectives
6

7. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Inventory Optimization
With demand becoming more volatile, product life cycles shorter and pressure on
costs higher, the challenge to drive your inventory down is mounting. In addition,
multi-channel multiplies the challenge.
THE REWARD IS HIGH:
ØMoney stuck in Product can’t be invested in growth
ØLower risk of obsolescence
ØLower cost of management and holding stock
ØLower effort in discounting
ØIncreased agility and focus; you’re always ready to look ahead
ØInventory masks your SC imperfections
IT IS NOT VERY EASY, THOUGH . . .
7

8. © AIMMS - 2015 Do not copy, cite, or distribute without permission© AIMMS - 2015 Do not copy, cite, or distribute without permission
Inventory Optimization: Theory
8
what
service
level(s)?

9. © AIMMS - 2015 Do not copy, cite, or distribute without permission© AIMMS - 2015 Do not copy, cite, or distribute without permission
Inventory Optimization: Theory
9
> What is the cost of a missed delivery?
> What are ways to prevent missing deliveries without adding inventory?

10. © AIMMS - 2015 Do not copy, cite, or distribute without permission© AIMMS - 2015 Do not copy, cite, or distribute without permission
Theory behind Inventory Optimization
10

11. © AIMMS - 2015 Do not copy, cite, or distribute without permission© AIMMS - 2015 Do not copy, cite, or distribute without permission
Theory behind Inventory Optimization
11

12. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Inventory Optimization; Examples
multi-echelon
integrating
inventory &
production

13. © AIMMS - 2015 Do not copy, cite, or distribute without permission
On Focus, Scope and Impact
13
REVENUE
growth
COST
reduction
INVENTORY END-2-END
myopic holistic
Pure
inventory
Production
&
inventory
End-2-End
including
inventory
Omni
Channel
inventory
Dynamic
Allocation
Clients to
depots
Shape
Demand to
flow
inventory
Relocating
RetailOutlet
inventory
Operations:
3D Slotting

14. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Inventory Optimization; who uses AIMMS?
14
integrating
inventory &
production
end-to-end
supply chain
incl. inventory
store inventory
& baking
optimization
stock to site
allocation
multi-site
statistical
safety stock
store inventory
re-allocation
purchasing,
inventory, blending,
production
warehouse
operations
multi-echelon

15. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Bob Woodburn’s view
> Why is inventory optimization important for you?
> What are complicating factors in your inventory
management?
> What role do you see for planning technology in your
organisation?
15

16. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Bob Woodburn’s view
> Why is inventory optimization important for you?
> What are complicating factors in your inventory
management?
> What role do you see for planning technology in your
organisation?
16

17. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Bob Woodburn’s view
> Why is inventory optimization important for you?
> What are complicating factors in your inventory
management?
> What role do you see for planning technology in your
organisation?
17

18. © AIMMS - 2015 Do not copy, cite, or distribute without permission
DEMO: Inventory & Production Optimization
18

19. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Like to experience for yourself?
19
“ I’m amazed; I know of no
other vendor that builds MY
application on the fly in a two
day workshop! “

20. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Next Webinars in this series
For more information refer to: marcel.mourits@aimms.com
20