Cloud-Based Inventory Management. Transforming SMB Supply Chain Planning
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- Marylou Green
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1 Cloud-Based Inventory Management Transforming SMB Supply Chain Planning Challenging Inventory Management Today s manufacturing and distribution supply chains are challenged with cost reductions, delivery improvements and process improvements. Discrete manufacturers have traditionally focused on improving productivity in manufacturing and as a result hold unnecessarily high inventories for finished goods and materials. The majority of businesses acknowledge the importance of having superior supply chain processes, however many are ill equipped to execute them. Distribution businesses rely on high customer service levels to remain competitive and win business. However shrinking margins, increasing availability demands, and intensifying competition, distribution businesses need to be able to dynamically respond to the changing market. As manufacturing and distribution SMBs begin to grow in stature and significance, many find themselves under increasing pressure from larger competitors as their inventory processes are no longer fit for purpose. SMBs need to offer the right products and eliminate stock-outs whilst preventing overstocking that can lead to inventory write-offs. Lack of control Businesses today generally hold several thousand SKUs (stock keeping units) corresponding to a major cost center. With an increasing trend towards a broader range of items and more customized products, the number of SKUs held by companies is likely to increase even more in the future. For each of the SKUs held in stock, a decision has to be made on its inventory management. Doing this for each SKU individually is an unfeasible task given the large numbers of SKUs held by most companies. Therefore, inventory is often managed not on a SKU-level but on a group-level. This groupmanagement method for several thousands of SKUs means only a few products are ever managed in the optimal way. Waste of time and money If you're business is using basic ERP system functionality, a home grown database solution or spreadsheets to plan your inventory, you are doing too much work. Constantly updating inventory planning parameters and tracking changes made leads to errors, resulting in stockouts and overstocking. 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 Reshaping Inventory Management The most effective inventory plan is the one that balances customer service and inventory investment levels. This requires accurate forecasts and intelligent, dynamic inventory policies as well as visibility of inventory. There is no time or room for manual inventory management processes, out of date planning and replenishment parameters or rule of thumb calculations. Dynamic, intelligent best-of-breed supply chain planning and inventory management solutions have been around for decades. Syncron has delivered and implemented many such solutions at some of the largest manufacturing and distribution corporations in the world. So what s new? The most recent development in inventory planning and optimization software is Cloud Computing. New technology has significantly lowered the cost of providing enterprise software meaning SMB companies can utilize applications that were previously limited to only large corporations. Cloud-based software for inventory planning and optimization offers users quick and secure access to sophisticated functionality for a simple, low-cost monthly subscription. SMBs are major adopters of cloudbased software It is often said that SMBs are at a strategic disadvantage when compared to their larger, tech-savvy competitors. This is no longer the case! With the powerful inventory management capability that is now available to SMBs they can be far more agile and responsive to business trends. Cloud computing offers cost savings and an attractive pay-as-you-go model that allows SMBs to establish an efficient and competitive inventory management process. Supply chain and information efficiencies translate into reduced costs and new opportunities. There is a huge benefit for SMBs as they can use supply chain management to drive a corporate strategy that increases revenues and profits. 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 users EazyStock EazyStock s functionality provides accurate demand forecasts, inventory plans and replenishment plans. It optimizes inventory and replenishment by automatically and dynamically: 1) Reclassifying every SKU based on frequency and value of annual usage (ABC-analysis) 2) Mapping the most appropriate forecast technique to each SKU s demand type 3) 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 5) Calculating recommended order quantities based on order level, open orders, inventory on hand and allocations The software also includes tools for inventory level and service level simulation and what if analysis, along with reporting and KPI monitoring. EazyStock Cloud-Based Inventory Management: Transforming SMB Supply Chain Planning 2
3 Put simply, EazyStock ensures that each and every SKU is planned in the optimal way. The software tracks the product lifecycle of items as demand is changing and will automatically stop replenishing a stock location when demand falls and will begin replenishing as demand picks up. Supply chain planning has never been so easy! EazyStock gives you everything you need to manage thousands or millions of inventory items across your network with less effort and more accuracy. 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 Software editions Each business has its own inventory needs, challenges and supply chain complexity; some businesses have one stock location and others have several and maybe a retail network. EazyStock is available in three Editions that provide functionality to meet your specific requirements. Basic Advanced Enterprise Basic inventory planning Advanced inventory optimization and replenishment Multi-level enterprise supply chain 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 Yes Yes Redistribution Virtual stock locations Multi-Echelon Network Optimization EazyStock Cloud-Based Inventory Management: Transforming SMB Supply Chain Planning 4
5 Support options Customer Support is dedicated to ensuring customer success with EazyStock. Highly-skilled professionals provide fast response and resolution to problems to quickly eliminate issues and answer customer questions ensuring users get the maximum benefit from the software. Standard Support Standard support package with access to Syncron Helpdesk during office hours (CET). Syncron Helpdesk Standard Service levels Extended Support Best-in-class Support with data flow monitoring, access to Syncron helpdesk during office hours (CET) as well as service management. Syncron Helpdesk Platinum Service levels Data flow monitoring Service Management What is the Cloud? Cloud computing is a computing model whereby all IT hardware, infrastructure, software and other elements are made available to the endusers over the Internet. It allows businesses access only the type and amount of computing services that they require. The Cloud is divided into three categories: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). EazyStock is delivered using SaaS. It is a method of delivering software applications and functionality to end-users over the Internet through a standard web browser. SaaS eliminates the customer s requirements for servers, storage, development and other common IT concerns. The hardware infrastructure, the software solution, and all third party software such as the database, operating system and application server are all included. Benefits of Cloud and SaaS Pay for what you use. The SaaS model provides flexibility so companies can scale up and down the software usage based on their needs and only pays for what is utilized. This is the main reason Small and Mid-size enterprises are embracing cloud-based solutions with the rate of growth expected to reach double digits this year, according to one of the technology research companies. Cloud-based solutions are cost-saving and low risk since they do not require a hefty upfront investment. If your business requirements change, you can turn off the software; stop using the service and stop paying for the service. Entire service is managed by Syncron. SaaS removes the internal costs associated with running your own IT infrastructure for inventory management software. Optimize your inventory without needing to invest in or implement any additional software or technology. EazyStock offers faster time-to-value and lower cost of ownership. Increased visibility across organizational boundaries. Deploy sophisticated inventory planning software in just a few weeks to act as a central hub for the entire supply chain and collaborate across organizations. Cloud-based supply chain systems reduce the noise within the supply chain, and simplify and speed up the exchange of data. Security and Availability Two of the biggest fears surrounding cloud services are those of security and availability. We address these issues head on. The Syncron Data Center (SDC) provides full redundancy, highest security as well as managed hosting services and monitoring. It includes the latest virus protection, up-to-date operating systems and required third party applications. Our cloud software is located in SDC which is colocated at the premises of one of Europe's most recognized co-location and fiber backbone providers with several customers in banking and financial business. Syncron runs each customer solution on dedicated and isolated local networks protected by redundant firewalls where only necessary inbound and outbound traffic and protocols are allowed. EazyStock Cloud-Based Inventory Management: Transforming SMB Supply Chain Planning 5
6 Syncron Data Center is configured with highest redundancy in mind. Internet connections, firewalls and internal networks and storage configuration are all redundant, databases and application servers are running on clustered and fail-over platforms to minimize interruptions and downtime. Backups are sent to an additional secure location on a daily basis to ensure short recovery times and recovery points. Powered by Syncron Syncron is a leading provider of supply chain and pricing management solutions to manufacturing and distribution companies. Syncron has built up extensive experience over the last 15 years delivering state-of-the-art solutions to the most demanding customers around the world. Syncron is a privately-held company headquartered in Stockholm, Sweden with operations and partners across the world. EazyStock is a sophisticated, cloud-based inventory management software solution from Syncron. It is delivered to Small and Medium-size Businesses through the Cloud using Software-asa-Service by a dedicated team of inventory and IT experts. EazyStock enables you to optimize your supply chain planning processes to reduce inventory costs, increase revenue and profitability, and create a competitive advantage. It's easy to get up and running, easy to use and easy to appreciate. With users in 96 countries worldwide Syncron customers include: Atlas Copco, BAE Systems, Electrolux, JCB, Komatsu, Mazda, Metso, Renault Trucks, Sandvik, Scania, Toyota, Trelleborg, Volvo Construction Equipment and Volkswagen Group. Learn more about EazyStock at: Global Headquarters Syncron International AB Ö. Järnvägsgatan 27 S Stockholm Sweden Phone: info@syncron.com Local Offices To find an office near you visit: EazyStock Cloud-Based Inventory Management: Transforming SMB Supply Chain Planning 6
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