Inventory Planning and Optimization with
SAP IBP Inventory Optimization

Get spot-on with your inventory and achieve profitability goals
while maintaining desired service level

Overview

Balance Customer Satisfaction and Profitability with Full Visibility of the Supply Chain Network

Strengthen your supply chain through SAP IBP Inventory Planning and Optimization by getting to the right inventory stock levels. Ensure stock availability for uncertainty and maintaining customer service level while maximizing profits. Independently planned inventory levels could lead to excess at one location increasing overall holding costs while too little inventory could cause stock-out. In that case, the solution can recommend cost-optimized inventory target levels for the entire supply chain network by taking such variabilities as input to the inventory model along with business conditions like service levels for internal nodes and customer-facing nodes. Recommended inventory targets levels from this module are directly used in supply planning, ensuring demand for target inventory is maintained at stocking nodes which are usually fulfillment centers for both customer and internal demands.

Benefits

Optimize inventory level across supply chain

Prioritize specific customers and stocking nodes and optimize the entire supply chain network with the most cost-effective inventory levels.

Simulate inventory optimization in real-time

Rerun Inventory algorithm simulating different demand and supply variabilities and assess its impact on inventory target position.

Visualize supply chain network

Have a complete representation of the supply chain network flow by creating an automatic view with inventory information at each location node and arc.

Features

Forecast Error Calculations

Get insights into your forecast error and take into account the impact of this uncertainty in your supply chain.

Global (Multi-Stage) Inventory Optimization

Plan recommended stock across your supply chain for each product and location, minimizing overall inventory holding cost while ensuring customer service levels are met.

Optimal Inventory Placement

Gain visibility into various inventory components to fulfill internal replenishment, customer demands, and buffer levels in case of sudden variability.