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amentis Use Case Assortment Wizard

The Assortment Wizard

Inventory optimization with amentis solutions

Step 1 – Getting to know the product range better

To achieve a successful stock optimization, you want to understand the impact of individual products on the performance and economic efficiency of the supply chain. This can be achieved through a multidimensional classification of your product range.

Classify the assortment

As a first step in successful stock optimization, it is advisable to create transparency regarding the assortment, by classifying the product portfolio in accordance with unique, logistic characteristics. The result of this classification provides eg information about your critical products to which special attention should be paid, such as highly priced slow movers.

Custom-fit allocations

As a basis for the classification the Assortment Wizard provides a large number of predefined and individually adaptable classification characteristics to cover as many relevant product characteristics as possible. This is because the standard ABC/XYZ analysis does not offer an adequate and clear basis for an assortment assessment in accordance with strategic, logistic and monetary aspects.

Easy analysis

An A classified material can, for example, be both an expensive slow mover and an inexpensive fast mover. Both alternatives require different storage strategies. But in accordance with the setting of your individual classification characteristics and execution of the functionality, you can analyze the results in the dynamic classification UI.

Defining measures

With the analysis of the consolidated dispositive information and the reduced complexity concerning the formation of class-clusters, targeted areas of action can now be identified (eg scrapping, adjustment of lot sizes).

Step 2 – Recognizing the potential

The assessment of your own performance regarding storage costs and availability illustrates your development potential to the determined optimum.

Potential analysis

With the potential analysis provided by the Assortment Wizard you have the possibility of optimizing storage costs and availability, and it offers a sound basis for the creation of a business case.

Orientation and alignment

The analysis can be of use to you at any moment as an orientation aid, to show where you currently are in comparison with the determined optimum and what potential you can still raise through the effective use of stock optimization.

Verifying measures

The effectiveness of the measures already taken can be verified through the continuous use of the application.

Step 3 – Making stocking decisions

Based on the calculated optimal stock levels per product per period, you can easily determine areas of action and sets of rules for stock management in your Supply Chain.

Optimization algorithm

With the product-specific allocation of target availability by means of the optimization algorithm, the Assortment Wizard periodically calculates the stock levels necessary to ensure this availability. In doing so, all relevant dispositive characteristics are considered, such as lot sizes, replacement times or minimum storage life. This means that you can minimize your stocks in respect of the targeted availability of all products.

Substantiated forecasts

In the projected stockUI, you can analyze per product and per periods how your stocks and safety stocks would develop with the optimal settings. And you can check how the projected stock level fits with the available storage capacity.

Anticipatory alerts

Verify the results of the optimization run at various aggregation levels and use the anticipatory alerts which are identified, in order to derive areas of action. For example, an alert shows you when it is necessary to adjust lot sizes as otherwise the settings could lead to conflicts concerning minimum shelf life rules.

Information density

Running this application provides you all information relevant to defining a long-term efficient rule set for your stock management.

Step 1 – Getting to know the product range better

To achieve a successful stock optimization, you want to understand the impact of individual products on the performance and economic efficiency of the supply chain. This can be achieved through a multidimensional classification of your product range.

Classify the assortment

As a first step in successful stock optimization, it is advisable to create transparency regarding the assortment, by classifying the product portfolio in accordance with unique, logistic characteristics. The result of this classification provides eg information about your critical products to which special attention should be paid, such as highly priced slow movers.

Custom-fit allocations

As a basis for the classification the Assortment Wizard provides a large number of predefined and individually adaptable classification characteristics to cover as many relevant product characteristics as possible. This is because the standard ABC/XYZ analysis does not offer an adequate and clear basis for an assortment assessment in accordance with strategic, logistic and monetary aspects.

Easy analysis

An A classified material can, for example, be both an expensive slow mover and an inexpensive fast mover. Both alternatives require different storage strategies. But in accordance with the setting of your individual classification characteristics and execution of the functionality, you can analyze the results in the dynamic classification UI.

Defining measures

With the analysis of the consolidated dispositive information and the reduced complexity concerning the formation of class-clusters, targeted areas of action can now be identified (eg scrapping, adjustment of lot sizes).

Step 2 – Recognizing the potential

The assessment of your own performance regarding storage costs and availability illustrates your development potential to the determined optimum.

Potential analysis

With the potential analysis provided by the Assortment Wizard you have the possibility of optimizing storage costs and availability, and it offers a sound basis for the creation of a business case.

Orientation and alignment

The analysis can be of use to you at any moment as an orientation aid, to show where you currently are in comparison with the determined optimum and what potential you can still raise through the effective use of stock optimization.

Verifying measures

The effectiveness of the measures already taken can be verified through the continuous use of the application.

Step 3 – Making stocking decisions

Based on the calculated optimal stock levels per product per period, you can easily determine areas of action and sets of rules for stock management in your Supply Chain.

Optimization algorithm

With the product-specific allocation of target availability by means of the optimization algorithm, the Assortment Wizard periodically calculates the stock levels necessary to ensure this availability. In doing so, all relevant dispositive characteristics are considered, such as lot sizes, replacement times or minimum storage life. This means that you can minimize your stocks in respect of the targeted availability of all products.

Substantiated forecasts

In the projected stockUI, you can analyze per product and per periods how your stocks and safety stocks would develop with the optimal settings. And you can check how the projected stock level fits with the available storage capacity.

Anticipatory alerts

Verify the results of the optimization run at various aggregation levels and use the anticipatory alerts which are identified, in order to derive areas of action. For example, an alert shows you when it is necessary to adjust lot sizes as otherwise the settings could lead to conflicts concerning minimum shelf life rules.

Information density

Running this application provides you all information relevant to defining a long-term efficient rule set for your stock management.

You are curious and would like to learn more about inventory optimization with the Assortment Wizard? Use the contact form to write us or learn more on our website.

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