EazyStock executive white paper | EazyStock


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Great inventory management is at the heart of any successful manufacturing or distribution business. Optimized inventory means you can avoid excess inventory and stock-outs, ensure customer service, and gain a competitive advantage. Unfortunately, inventory management is still too complex and time consuming for many small and midsize businesses.

This white paper explains the concept of cloud-based inventory management and how your organization can leverage the benefits. Software-as-a-Service provides a low risk and fast route to lower inventory costs, increased inventory availability and establishing a major competitive advantage.

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EazyStock executive white paper | EazyStock

  1. 1. Cloud-Based Inventory Management Transforming SMB Supply Chain PlanningChallenging Inventory Management Lack of controlToday’s manufacturing and distribution Businesses today generally hold several thousandsupply chains are challenged with cost SKUs (stock keeping units) corresponding to areductions, delivery improvements and major cost center. With an increasing trendprocess improvements. towards a broader range of items and more customized products, the number of SKUs heldDiscrete manufacturers have traditionally focused by companies is likely to increase even more inon improving productivity in manufacturing and the future. For each of the SKUs held in stock, aas a result hold unnecessarily high inventories for decision has to be made on its inventoryfinished goods and materials. The majority of management. Doing this for each SKUbusinesses acknowledge the importance of individually is an unfeasible task given the largehaving superior supply chain processes, however numbers of SKUs held by most companies.many are ill equipped to execute them. Therefore, inventory is often managed not on aDistribution businesses rely on high customer SKU-level but on a group-level. This group-service levels to remain competitive and win management method for several thousands ofbusiness. However shrinking margins, increasing SKUs means only a few products are everavailability demands, and intensifying managed in the optimal way.competition, distribution businesses need to beable to dynamically respond to the changing Waste of time and moneymarket. If youre business is using basic ERP systemAs manufacturing and distribution SMBs begin to functionality, a home grown database solution orgrow in stature and significance, many find spreadsheets to plan your inventory, you arethemselves under increasing pressure from larger doing too much work. Constantly updatingcompetitors as their inventory processes are no inventory planning parameters and trackinglonger ‘fit for purpose’. SMBs need to offer the changes made leads to errors, resulting in stock-right products and eliminate stock-outs whilst outs and overstocking.preventing overstocking that can lead toinventory write-offs. This is a very common situation and is costing companies both time and money. The question is, can you afford to maintain a manual, inefficient process which lacks visibility in today’s marketplace? Syncron offers solutions and insight so you can successfully overcome these difficult times and strive to sustainable profitably in the years ahead.Released: 23 November 2012
  2. 2. Reshaping Inventory Management SMBs are major adopters of cloud-The most effective inventory plan is the one that based softwarebalances customer service and inventory It is often said that SMBs are at a strategicinvestment levels. This requires accurate disadvantage when compared to their larger,forecasts and intelligent, dynamic inventory tech-savvy competitors. This is no longer thepolicies as well as visibility of inventory. There is case!no time or room for manual inventorymanagement processes, out of date planning and With the powerful inventory managementreplenishment parameters or ‘rule of thumb’ capability that is now available to SMBs they cancalculations. be far more agile and responsive to business trends. Cloud computing offers cost savings andDynamic, intelligent best-of-breed supply chain an attractive pay-as-you-go model that allowsplanning and inventory management solutions SMBs to establish an efficient and competitivehave been around for decades. Syncron has inventory management process.delivered and implemented many such solutionsat some of the largest manufacturing and Supply chain and information efficienciesdistribution corporations in the world. So what’s translate into reduced costs and newnew? opportunities. There is a huge benefit for SMBs as they can use supply chain management toThe most recent development in inventory drive a corporate strategy that increasesplanning and optimization software is Cloud revenues and profits.Computing. New technology has significantlylowered the cost of providing enterprise softwaremeaning SMB companies can utilize applicationsthat were previously limited to only largecorporations. Cloud-based software for inventoryplanning and optimization offers users quick andsecure access to sophisticated functionality for asimple, low-cost monthly subscription. Benefits of cloud-based inventory solutions include:  No long term, up front financial commitment – even the smallest company can now have affordable, sophisticated inventory planning tools  Scale the solution up and down to match your business requirements – minimize and mitigate risk  Fast delivery and deployment – modern IT architecture enables quick and effortless installation  Automatic software upgrades – updates are performed by Syncron without interrupting the usersEazyStock 5) Calculating recommended order quantitiesEazyStock’s functionality provides accurate based on order level, open orders, inventorydemand forecasts, inventory plans and on hand and allocationsreplenishment plans. It optimizes inventory andreplenishment by automatically and dynamically: The software also includes tools for inventory level and service level simulation and “what if”1) Reclassifying every SKU based on frequency analysis, along with reporting and KPI and value of annual usage (ABC-analysis) monitoring.2) Mapping the most appropriate forecast technique to each SKU’s demand type3) Calculating reordering point and safety stock based on a number of factors such as forecast accuracy, target service level,4) replenishment frequency, lead time and supplier conditions EazyStock | Cloud-Based Inventory Management: Transforming SMB Supply Chain Planning 2
  3. 3. Put simply, EazyStock ensures that each and Supply chain planning has never been so easy!every SKU is planned in the optimal way. The EazyStock gives you everything you need tosoftware tracks the product lifecycle of items as manage thousands or millions of inventory itemsdemand is changing and will automatically stop across your network with less effort and morereplenishing a stock location when demand falls accuracy.and will begin replenishing as demand picks up. Business benefits  Reduce inventory and supply chain costs by 30%  Automate inventory planning and replenishment  Increase customer service levels  Release capital tied up in inventory EazyStock | Cloud-Based Inventory Management: Transforming SMB Supply Chain Planning 3
  4. 4. Software editions EazyStock is available in three Editions thatEach business has its own inventory needs, provide functionality to meet your specificchallenges and supply chain complexity; some requirements.businesses have one stock location and othershave several and maybe a retail network. Basic Advanced Enterprise Basic inventory Advanced inventory Multi-level enterprise planning optimization and supply chain replenishment optimization Yes Yes Yes Import of product data Yes Yes Yes Import of past customer orders Yes Yes Yes Parts profiling Yes Yes Yes Demand forecasting Yes Yes Yes Inventory policy Yes Yes Yes Safety stock calculation Yes Yes Yes Reordering point calculation Yes Yes Yes Advanced reporting & KPI’s Yes Yes Yes Parameter export to ERP Yes Yes Yes Service level simulation Yes Yes Inventory simulation Yes Yes Import of inventory levels Yes Yes Import of open PO Yes Yes Generate & export of replenishment orders Yes Yes Order quantity calculation Yes Redistribution Yes Virtual stock locations Yes Multi-Echelon Network Optimization EazyStock | Cloud-Based Inventory Management: Transforming SMB Supply Chain Planning 4
  5. 5. Support options resolution to problems to quickly eliminate issuesCustomer Support is dedicated to ensuring and answer customer questions ensuring userscustomer success with EazyStock. Highly-skilled get the maximum benefit from the software.professionals provide fast response and Standard Support Extended Support Standard support package with access to Syncron Best-in-class Support with data flow monitoring, access to Helpdesk during office hours (CET). Syncron helpdesk during office hours (CET) as well as service management. Syncron Helpdesk Syncron Helpdesk Standard Service levels Platinum Service levels Data flow monitoring Service ManagementWhat is the Cloud? Entire service is managed by Syncron. SaaSCloud computing is a computing model whereby removes the internal costs associated withall IT hardware, infrastructure, software and running your own IT infrastructure for inventoryother elements are made available to the end- management software. Optimize your inventoryusers over the Internet. It allows businesses without needing to invest in or implement anyaccess only the type and amount of computing additional software or technology. EazyStockservices that they require. The Cloud is divided offers faster time-to-value and lower cost ofinto three categories: Infrastructure-as-a-Service ownership.(IaaS), Platform-as-a-Service (PaaS) andSoftware-as-a-Service (SaaS). Increased visibility across organizational boundaries. Deploy sophisticated inventoryEazyStock is delivered using SaaS. It is a method planning software in just a few weeks to act as aof delivering software applications and central hub for the entire supply chain andfunctionality to end-users over the Internet collaborate across organizations. Cloud-basedthrough a standard web browser. SaaS supply chain systems reduce the noise within theeliminates the customer’s requirements for supply chain, and simplify and speed up theservers, storage, development and other exchange of data.common IT concerns. The hardwareinfrastructure, the software solution, and all third Security and Availabilityparty software such as the database, operatingsystem and application server are all included. Two of the biggest fears surrounding cloud services are those of security and availability. WeBenefits of Cloud and SaaS address these issues head on.Pay for what you use. The SaaS model The Syncron Data Center (SDC) provides fullprovides flexibility so companies can scale up and redundancy, highest security as well as manageddown the software usage based on their needs hosting services and monitoring. It includes theand only pays for what is utilized. This is the latest virus protection, up-to-date operatingmain reason Small and Mid-size enterprises are systems and required third party applications.embracing cloud-based solutions with the rate of Our cloud software is located in SDC which is co-growth expected to reach double digits this year, located at the premises of one of Europes mostaccording to one of the technology research recognized co-location and fiber backbonecompanies. Cloud-based solutions are cost-saving providers with several customers in banking andand low risk since they do not require a hefty financial business. Syncron runs each customerupfront investment. solution on dedicated and isolated local networksIf your business requirements change, you can protected by redundant firewalls where onlyturn off the software; stop using the service and necessary inbound and outbound traffic andstop paying for the service. protocols are allowed. EazyStock | Cloud-Based Inventory Management: Transforming SMB Supply Chain Planning 5
  6. 6. Syncron Data Center is configured with highest EazyStock is a sophisticated, cloud-basedredundancy in mind. Internet connections, inventory management software solution fromfirewalls and internal networks and storage Syncron. It is delivered to Small and Medium-sizeconfiguration are all redundant, databases and Businesses through the Cloud using Software-as-application servers are running on clustered and a-Service by a dedicated team of inventory andfail-over platforms to minimize interruptions and IT experts. EazyStock enables you to optimizedowntime. your supply chain planning processes to reduce inventory costs, increase revenue andBackups are sent to an additional secure location profitability, and create a competitive advantage.on a daily basis to ensure short recovery times Its easy to get up and running, easy to use andand recovery points. easy to appreciate. With users in 96 countries worldwide SyncronPowered by Syncron customers include: Atlas Copco, BAE Systems,Syncron is a leading provider of supply chain and Electrolux, JCB, Komatsu, Mazda, Metso, Renaultpricing management solutions to manufacturing Trucks, Sandvik, Scania, Toyota, Trelleborg,and distribution companies. Syncron has built up Volvo Construction Equipment and Volkswagenextensive experience over the last 15 years Group.delivering state-of-the-art solutions to the most Learn more about EazyStock at:demanding customers around the world. Syncron http://cloud.syncron.comis a privately-held company headquartered inStockholm, Sweden with operations and partnersacross the world. Global Headquarters Local Offices Syncron International AB To find an office near you visit: Ö. Järnvägsgatan 27 www.syncron.com/contact S-111 20 Stockholm Sweden Phone: +46 8 410 802 00 Email: info@syncron.com EazyStock | Cloud-Based Inventory Management: Transforming SMB Supply Chain Planning 6