Balance Service Levels with Business Objectives Using Analytics-Driven Insight
 

Balance Service Levels with Business Objectives Using Analytics-Driven Insight

on

  • 1,737 views

The SAP® Service Level Optimization application by SmartOps helps you gain insight into your multistage supply chain. You can use the software to better understand demand patterns and supply ...

The SAP® Service Level Optimization application by SmartOps helps you gain insight into your multistage supply chain. You can use the software to better understand demand patterns and supply constraints. With this knowledge, you can determine the appropriate service levels by item, customer, and location and further optimize inventory levels. You can use the software on a stand-alone basis, or you can use it with other SAP applications, including the SAP Enterprise Inventory Optimization application by SmartOps.

Statistics

Views

Total Views
1,737
Slideshare-icon Views on SlideShare
1,737
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Balance Service Levels with Business Objectives Using Analytics-Driven Insight Balance Service Levels with Business Objectives Using Analytics-Driven Insight Presentation Transcript

    • SAP Solution BriefSolution Extensions Objectives Solution Benefits Quick FactsSAP Service Level Optimization by SmartOps Balance Service Levels with Business Objectives Using Analytics-Driven Insight
    • Objectives Solution Benefits Quick Facts Meet service promises while boosting profitabilityMeet service promises while How can you most effectively meet customer service needs while holdingboosting profitability the line on inventory costs? You need analytics tools that give you insight into enterprise data, helping you balance inventory levels with customer satisfaction and increase supply chain profitability. The SAP® Service Level Optimization applica- You can use the software on a stand-alone tion by SmartOps helps you gain insight into basis, or you can use it with other SAP applica- your multistage supply chain. You can use tions, including the SAP Enterprise Inventory the software to better understand demand Optimization application by SmartOps. patterns and supply constraints. With this knowledge, you can determine the appropri- Achieve your global service level targets with ate service levels by item, customer, and minimum total inventory using SAP Service location and further optimize inventory levels. Level Optimization. 2
    • Objectives Solution Benefits Quick Facts Connect service levels with inventory costsConnect service levels with In multistage supply chains, maintaining SAP Service Level Optimization helps youinventory costs proper product inventories is a balancing act. make this connection. The SAP software offers To meet your service-level requirements, you powerful, intuitive analytics features that helpModel inventory drivers need to stock goods at different levels of pro- you pinpoint the multiple drivers that affectfor optimal service levels duction in various locations to meet a wide both inventory costs and service levels. range of manufacturing and assembly needs.Use analytics to balance But holding too much safety stock will drive This software helps you move beyond tradi-service levels with cost up your carrying costs. tional oversimplified models, which typically sacrifice inventory efficiencies to support What if you could better understand the rela- broad customer service targets. Analytics tionships between service levels and inven- features help you gain insight into the impact tory costs – down to the item and location of inventory decisions on customer service level? levels. That’s the fastest way to make smarter inventory decisions that satisfy customers while reducing costs. Please your customers and your CFO. SAP Service Level Optimization gives you insight necessary to increase service without driving up costs. 3
    • Objectives Solution Benefits Quick Facts Model inventory drivers for optimal service levelsConnect service levels with To establish the inventory levels that can sup- demand, lead times, order frequency andinventory costs port optimum service, you need insight into batch sizes, transportation variability, pro- the factors that drive demand. You can use duction variances, supplier and materialModel inventory drivers the SAP software to determine realistic uncertainty, capacity constraints, and plan-for optimal service levels service-level commitments based on your ning time fences. actual inventory drivers.Use analytics to balance Modeling these factors helps you gain a moreservice levels with cost With SAP Service Level Optimization, you can complete view of the inventory issues that model relevant inventory drivers such as affect your ability to meet service-level com- sales volume or gross margin, demand vola- mitments. This knowledge helps you deter- tility, and seasonality or sales frequency. The mine the optimal service level for each item software can also calculate the impact of lost in the supply chain. Continued on next page Excessive safety stock won’t bring you peace of mind. Profitability will. Optimize service levels and minimize inventory costs with SAP software. 4
    • Objectives Solution Benefits Quick FactsConnect service levels with You can use the software to conduct what-ifinventory costs analyses and determine the best service levels for specific customers. For example, you canModel inventory drivers begin your analysis using a single service-levelfor optimal service levels commitment for a particular item. Then use the software to model different commitmentsUse analytics to balance by customer, and explore how changes wouldservice levels with cost impact inventory and profitability. With this powerful modeling functionality, you can make incremental adjustments to inven- tory and service levels, considering different supply or demand factors. You can even model choices down to the item and location level. Powerful analytics help you visualize the service impact of varying inventory levels. It’s the next best thing to a crystal ball. 5
    • Objectives Solution Benefits Quick Facts Use analytics to balance service levels with costConnect service levels with High service levels may improve customer The software can help you identify customerinventory costs satisfaction, but how do they affect your demand that would be a good candidate for bottom line? increased service levels, due to low forecastModel inventory drivers error or high margin. You can also identifyfor optimal service levels With the SAP software, you can determine how products that cannot profitably meet current an increase or decrease in a specific service- service targets. You can then rebalance yourUse analytics to balance level commitment affects your company’s corporate service strategy to achieve anservice levels with cost profitability. Instead of setting one global ser- overall targeted service rate while reducing vice target for all customers and items, you inventory for specific products. can use the software to pinpoint customers, items, or locations where service levels can By providing this analytics-driven insight, the be shifted to improve profitability. software helps you to understand the true drivers of profitability. You can use that knowl- edge to make decisions that reduce inventory costs and increase supply chain profitability. Ready for excellent service with low costs? SAP Service Level Optimization helps you strike the right balance. 6
    • Objectives Solution Benefits Quick Facts Gaining value from a better balanceGaining value from a better balance SAP Service Level Optimization helps you •• Increased sales – by fine-tuning inventory gain a clearer picture of how you can balance and service levels so that goods are always service with inventory levels and costs. By available where and when customers providing detailed insight and the power to demand them perform what-if analyses, the software helps •• Reduced inventory levels – allowing you to you meet your corporate goals for customer incrementally cut costs and free up working service and profitability by adjusting inven- capital tory levels. With this insight, your organization •• Enhanced customer satisfaction – by con- can realize considerable business benefits, sistently meeting your promised service- including these: level agreements •• Improved supply chain profitability – by increasing revenue and reducing inventory costs 7
    • www.sap.com Objectives Solution Benefits Quick Facts Summary Benefits The SAP® Service Level Optimization appli- •• Increased sales by fine-tuning inventory cation by SmartOps helps you understand and service levels demand patterns and supply constraints, giv- •• Reduced inventory levels, lowering costs ing you the insight to meet customer service and freeing up working capital needs while cutting inventory costs. You can •• Improved customer satisfaction by consis- determine appropriate service levels by item, tently delivering as promised customer, and location, and you can set inven- •• Enhanced supply chain profitability, tory levels accordingly. With this insight, you through increased revenue and reduced can balance inventory costs with customer sat- inventory costs isfaction, increasing supply chain profitability. Learn More Objectives Call your SAP representative, or visit us online •• Achieve global service-level targets at www.sap.com/lines-of-business/scm •• Minimize total inventory /service-level-optimization. •• Increase supply chain profitability Solution •• Inventory intelligence that provides insight into items and locations •• Powerful analytics features to understand inventory drivers •• What-if analyses to compare the outcomes of different strategies •• Modeling features to help balance service levels with cost CMP21270 (12/08)Copyright/Trademark | Privacy | Impressum 8 ©2012 SAP AG. All rights reserved.