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    Inventory optimization

    Challenges in the industry

    Companies today are under pressure to ensure delivery capability, reduce costs and at the same time cope with volatile markets and disrupted supply chains. Inefficiently managed inventories quickly lead to high capital commitments or delivery failures.

    Manufacturing companies in the SME sector typically face the following challenges when it comes to inventory management:

    Challenges:

    • High storage costs / capital commitment: large inventories mean high costs for storage and capital commitment. Depreciation, obsolescence of parts, overproduction and obsolescence also play a role.
    • Overstocks and stock shortages: There is often a conflict between sufficient availability and minimal warehousing. Missing parts lead to production stops or delivery delays, while excess stock blocks capital.
    • Fluctuating demand & supply chain uncertainty: Demand can be volatile, lead times can vary, supply bottlenecks can occur - this makes it difficult to plan order quantities, safety stock and replenishment.
    • Non-transparent database / inadequate evaluations: Without good data on consumption, inventories, lead times, suppliers, etc., optimization is hardly possible. Many companies have heterogeneous systems or manual Excel lists.
    • Complex scheduling parameters: The correct determination of safety stock, replenishment time, batch sizes, delivery intervals requires a lot of experience and often parameters are outdated or statically set.
    Inventory optimization

    Solution from Proalpha

    Minimize your total costs, avoid unnecessary expenses and increase your delivery reliability at the same time. With Proalpha, capital is not only used efficiently, but your entire supply chain is optimized.

    • Proalpha analyzes historical consumption and movement data, identifies patterns (e.g. seasonal fluctuations, bottlenecks) and forecasts future requirements.
    • MRP parameters (e.g. batch sizes, safety stock, replenishment time) are suggested or optimized based on the analysed data.
    • Dashboards, alerts and reports provide transparency on key stock figures, deviations, potential for reducing excess stock or avoiding stock shortages.
    • Users can derive recommendations for action and make data-based replenishment decisions

    Your business benefits with Proalpha

    Using Proalpha for inventory optimization brings several direct and indirect business benefits:

    Reduction in storage and capital commitment costs:

    Optimized inventories reduce warehousing costs, depreciation and tied-up capital is freed up.

    Improved delivery reliability and availability:

    More precise planning and better inventory control reduce the likelihood of stock-outs or production stoppages - increasing customer satisfaction.

    More efficient procurement processes & scheduling:

    Planning parameters are optimized, order quantities and intervals are better planned - resulting in lower procurement and administration costs.

    Increased transparency and better decisions:

    Dashboards and AI analyses provide decision-makers with better insight into processes and enable proactive action, not just reactive action.

    Competitive advantage and supply chain resilience:

    Especially in volatile markets, the ability to manage inventory flexibly and efficiently is an advantage - lower risks in the event of supply chain interruptions.

    Sustainability & resource efficiency:

    Less excess stock, less storage space, lower energy/handling costs → supports economic and ecological goals.

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    "...the only tool in the ERP environment that can help us with inventory reduction and MRP analysis"

    Alexander Salomon
    Project Manager for international IT and digitalization projects, emz Hanauer GmbH & Co. KGaA

    Product brochure

    Info brochure

    You can find all the functions and benefits of the module in detail in our Industrial AI Platform information brochure.

    Download brochure
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