Advanced Inventory Planning

1. ValogixValogix®®
DMRPDMRP SmoothSmooth--FlowFlow
Inventory Planning & OptimizationInventory Planning & Optimization
Enhanced Planning Features
Valogix LLC, 27 Division St, Suite 2, Saratoga Springs, NY 12866-2125 USA
Work smarter not harder. VALOGIX® DMRP Inventory Planner incorporates key aspects of inventory management
into one advanced, simple‐to‐use so ware product. Synchronized planning improves your compe ve advantage by
keeping costs low and inventory balanced, so you can focus on customer service. Valogix easy‐to‐use interface makes
it simple for any employee to understand and use the solu on, freeing up resources to do what you do best.
State-of-the-Art
Planning & Value
VALOGIX® DMRP
The first truly synchronized inventory
planning & optimization technology.
Valogix DMRP plans for items and
materials used in production and in
finished goods simultaneously.
This means you get more accurate
control and planning of your multi‐use
inventory.
Improvements
20% - 40%
Inventory
Reduction
15% - 30%
Reduction
inStock-outs
6% - 15%
Reductionin
Expedited Shipments
15% - 25%
Increase in
Sales & Revenues
5% - 12%
Productivity
Gains
Savings
Wholesale DistributionWholesale Distribution
Valogix automates the en re inventory planning process:
 Forecas ng & Planning – every item at every loca on
 Stock Level Se ng – considers forecast, lead me, order frequency,
desired service level and variability in demand
 Replenishment – Purchase Orders, Produc on Orders, Stock Transfers
 Op miza on – cost reduc on & control ‐ strategic planning analy cs
Easy to use and highly effec ve
 Avoids disrup ons from costly stockouts
 Excep on based – alerts warn of poten al future issues
 Planning Groups give unparalleled planning control & flexibility
Effec vely me‐phase plans all items at all loca ons simultaneously
 Items used in B.O.M.s and Kits as well as those sold independently
 Back‐schedules to cover longest lead me of components
 Considers subs tutes and supersedes
 Synchronized planning for smooth‐flow inventory availability
“In such a challenging economy, businesses have to find ways to trim the “fat” and increase customer service
at the same time. Valogix helps not only Translectric do that, but our dealers benefit by not having to carry
large quantities of stock and still have access to what they need when they need it.”
-Scott Toll, Operations Manager, Translectric
Valogix gives you instant visibility to all warehouses, field stock, remote stocking
loca ons, and even virtual loca ons. Op miza on provides excep onal value by
reducing inventory, controlling new purchases and improving customer service.
For all Wholesale Distribu on: Avia on, Audio, Automo ve, Building Materials,
Consumer products, Construc on, Electrical, Food & Beverage, Furniture, Home
Automa on, HVAC, Industrial, Lawn & Garden, Medical & Dental, & much more.

2. Valogix DMRP and Distribution PlanningValogix DMRP and Distribution Planning
© Copyright Valogix LLC 2012 All Rights Reserved
 Assume, we have 3 loca ons supplied by a master warehouse,
which has a planning horizon of 90 days. I t also has a forecast of 90
units for that three‐month period for an item.
 Through the advanced algorithms in VALOGIX DMRP Inventory
Planner, we can predict that:
 Loca on 1 will place a replenishment order for 30 units
16 days from now;
 Loca on 2 will place an order for 20 units in 27 days;
 Loca on 3 will place an order for 40 units in 7 days.
 So, combining the upcoming requirements for the three loca ons,
we will actually need to resupply these loca ons with a total of 90
units in 27 days from now.
 The VALOGIX DMRP Inventory Planner technology replaces the
uniform usage assump on common with other DRP and MRP
modules with predic ons of the actual demand. This will prevent
costly stockouts caused from the “bullwhip” effect”.
How Valogix DMRP Works in a Multi-location Replenishment Environment
The bullwhip effect is an observed phenomenon in forecast‐driven distribu on channels. It refers to a trend of larger and larger
swings in inventory in response to changes in demand, as one looks at firms further back in the supply chain for a product.
Because customer demand is rarely perfectly stable, businesses must forecast demand to properly posi on inventory and other
resources. Forecasts are based on sta s cs, and they are rarely perfectly accurate. Because forecast errors are a given, companies
o en carry an inventory buffer called "safety stock". Moving up the supply chain from end‐consumer to raw materials supplier,
each supply chain par cipant has greater observed varia on in demand and thus greater need for safety stock. In periods of rising
demand, down‐stream par cipants increase orders. In periods of falling demand, orders fall or stop, thereby not reducing
inventory. The effect is that varia ons are amplified as one moves upstream in the supply chain (further from the customer).
Master Warehouse Resupplies all Locations
30
20
40
Quantity Needed at each location
Location 1
Location 2
Location 3
Lead Time in Days 
30 60 90
• Planning Horizon: 90 Days
• Forecast = 90 units
90 units
30 60
Inventory planning for Wholesale distributors has become more complex and costly. The ever‐increasing number of new Items
(SKUs), changing demand pa erns and increasing transporta on costs are taking a toll on a distributor’s bo om line. Especially
difficult is planning items used both in kits and sold separately. Further complexity comes from planning for mul ple loca ons
and accoun ng for subs tutes and supersedes. VALOGIX DMRP Inventory Planner helps solve these complex
issues quickly and efficiently.

3. This feature allows you to plan replenishments by Vendor
to create the most efficient purchase order. It provides
quick visibility of minimum Vendor requirements includ‐
ing dollar, volume, weight and quan ty. You can meet
Vendor Freight requirements, Lot Sizes, Purchase Unit of
Measures and much more. The system automa cally
calculates your shortage risk for each item so you know
the poten al for stock‐outs. Purchase orders are
automa cally prepared once approved.
Vendor Planning
Automated ForecastingAutomated Forecasting -- OptimizationOptimization -- ReplenishmentReplenishment
Automated Replenishment Planning
VALOGIX DMRP Inventory Planner recommends op mal
stocking levels for all items at every loca on. The system
calculates the correct amount of stock needed to cover
the expected demand for each item’s planning horizon.
Then it recommends purchase orders, transfer orders and
produc on orders. This makes more efficient use of
cri cal company assets. Automated replenishment
planning eliminates guess work and manual effort, saving
valuable me and money. The interac ve replenishment
reports allows you to plan for more items, order more
frequently, reduce stock levels and free‐up cash.
© Copyright Valogix LLC 2012 All Rights Reserved
Item Master Demand History & Forecasting
The Valogix‐built algorithms include trend, seasonal, and
mul plica ve models like Season‐Trend or Trend‐Season.
Forecas ng ‘new’ items is simple and easy using Proxy
History or Supersede History. This enables the user to set
a forecast by referencing the history of an exis ng item.
Valogix automa cally sets op mal stocking quan es for
each item at each loca on, crea ng drama c costs savings
while improving customer service levels.
Forecas ng is automa c, requiring li le to no user input to
choosing which algorithm to use.

4. © Copyright Valogix LLC 2012 All Rights Reserved
Valogix LLC, 27 Division St, Suite 2, Saratoga Springs, NY 12866-2125 USA Tel: (518) 450-0309 Fax: (518) 450-0319 www.valogix.com
“Using the advanced inventory planner from Valogix, we were able to reduce
inventory by 10% yielding roughly $300,000 in cash that had been tied up.
We were delighted with the results.”
Rick Crowder, VP/GM, Industrial Commodities Inc.
We know you work hard every day. You may think your inventory is under control, but can you be sure? Each day
you are not using VALOGIX solu ons, you are missing out on the opportunity to free up CASH. For example, based
on an inventory value of $1,000,000 and an average inventory reduc on and produc vity gains of approximately
31%, you could free up as much as $310,000! It doesn’t get any easier or be er than this.
With an inventory investment of $500,000 this could lead to a ini al savings of over $100,000!
Is Your Inventory Under Control?
Based on your business goals, Valogix creates a forecast, sets op mal stocking levels and iden fies your ideal
inventory investment. It compares the recommended stock investment to your actual stock investment.
Valogix makes it easy to iden fy and take ac on on obsolete, excess and inac ve items. You can quickly filter,
sort and drill down into item detail and make be er decisions.
Valogix makes your job easier and more productive
Analy cs
VALOGIX® DMRP Inventory Planner provides a framework for accessing relevant informa on to make intelligent
replenishment decisions. The details are immediately accessible when ques ons arise about the status of an
item at a stocking loca on. The use of dashboards throughout the product provides informa on that is easy to
read and understand.
Don’t wait. Contact Valogix or your Authorized Valogix representa ve today!
Valogix incorporates IBM so ware into the virtualized solu on. Chosen for its
reliability and advanced technology, IBM® DB2® is a powerful, highly reliable
database that is self‐tuning and requires li le to no maintenance. It can scale
to any size business. IBM® WebSphere® Applica on Server is the middleware
that communicates with the browser and the Internet.
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