Inventory management can be challenging task, but with the right tools it can be very efficient and let to avoid overstock or understock. Manage your inventory efficiently!

1. Automating Inventory
Management
Efficient Stock Management

2. Competition among manufacturers and
distributors continues to rise. Thus, companies
are constantly looking for ways to maximize
their efficiency and gain better control over
their warehouse inventory management.

3. Inventory management
Inventory management challenges are a vexing
problem for manufacturers, affecting:
Operational efficiency
Customer satisfaction
Revenue

4. Main Inventory
Management Challenges

5. Knowing the Inventory
Company should know what is in stock, what is
going to be ordered, the size (both quantity and
shape) of the order, and what needs to be
replenished.

6. Inefficient Processes
Many inventory
management systems
are built on or rely on
outdated software or
manual processes. That
creates incredibly
challenging work
environment for anyone
involved in the
inventory management
process.

7. Customer Demand
Customers needs are changing every day
and it is difficult to compete with
number of suppliers, keep up with those
needs of customers and manage
inventory appropriately at the same
time.

8. Challenges Faced by Distribution
Companies
Conflict

9. Inventory
Management
Approaches

10. PUSH approach: maximum inventory
near to the customer
PULL approach: maximum inventory
near to the factory and fast
replenishment to the next link in the
supply chains

11. What Can Help Overcome the
Challenges?

12. Inventory Management
Automation Methods

13. Inventory Management
Automation methods
Forecasting
Forecast quality is based on history,
expecting it will be repeated in
future.
Min – Max
Specify minimum and maximum inventory
levels; when the inventory level drops
below the minimum, the action is required
in order to bring the balance back up to
the maximum.
Dynamic Buffer
Stock buffers are monitored against
consumption and dynamically
readjusted accordingly.

14. Automated Forecasting
Data quality issues can’t be solved 100%
automatically;
Each algorithm setup performs well only in
certain cases and in certain periods of time;
Forecast errors are unpredictable and could
be significant;
Therefore forecast’s for every item must be
revised by high competence staff. It is a costly
and time consuming procedure.

15. Min - Max
Main challenge is to find which item requires Min - Max level adjustment.
Min and Max levels for each item must
be adjusted manually;
Min - Max levels must be adjusted after
demand, lead time or replenishment
cycle changes;
Automatic Min and Max adjustments
could be done using forecast
algorithms, with all the earlier described
problems.

16. Dynamic Buffer
• Order ONLY what‘s been sold
• Stock is enough ONLY till the next replenishment
• Adjust inventory levels ONLY when the situation
changes
Demand
changes
Lead time
changes
Unreliable
supply occurs
Permanent
customer is
lost
End date of
item life-cycle
changes
Promotion
campaign
starts
Reacting to the
actions of the
competitors
Other factors

17. What Do I Need?

18. Company needs one tool that could speak
everybody‘s language – such as Soft4Inventory

19. Efficient Inventory Management
Software
Soft4Inventory uses well-
recognized dynamic buffer
technology, together with the
LEAN pull replenishment approach,
in order to optimize inventory
levels efficiently.
Built on Microsoft Dynamics NAV, it
helps to increase up to 50 % in the
customer service level you want to
achieve, and decrease up to 40% in
the inventory level during the first
year after Soft4Inventory
implementation.

21. Soft4Inventory Calculator
Using our web calculator you can calculate the
approximate benefits your company might achieve
after implementing Soft4Inventory.
Try the Calculator NOW

22. Clients Are Talking...
We chose Soft4Inventory – software solution,
using dynamic buffer technology, which resolved
our trade-specific challenges better than
previously used automated forecasting and
MinMax tools. Soft4Inventory is built into our
operational Dynamics NAV system; as a result,
the IT system load decreased, and we now also
have faster access to all the necessary
information.
Executive Director
Andrius Rinkevicius

23. Answer these questions
How do you manage your stock?
How much do this impact the
real demand?
Because of the human factor, how much additionally
YOU must stock in the supply chain?
How does this affect performance of
your company ?
How well do your competitors manage
stock?

24. Contact Us
Need help or a consultation?
Start optimizing your inventory levels
today!
Contact us at ask4soft@soft4.eu or visit
www.soft4inventory.com
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