Combining Inventory Optimization With Additional Analytics Approaches
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Key Takeaways
⇨ Inventory optimization is frequently done in silos which is not an optimal approach.
⇨ Many additional type of analytics needs to happen in sync, like SKU level profitability analysis, Service level determination, product design, and network design.
⇨ Each of these types of analytics influence inventory costs and hence play a key role in inventory optimization.
Inventory Optimization emerged as a key focus area over the next two years for SAPinsiders in our recent research, Supply Chain Planning in The Cloud. As organizations still struggle with fluctuating demand patterns developed during the pandemic, inventory policies are also evolving. Hence, it is unsurprising that inventory management and optimization remain a key focus area for SAPinsiders and is the theme of our upcoming research report in November 2022. But an important aspect to understand for those embarking on an inventory optimization journey is that inventory policies can not be formulated in silos, and inventory optimization needs to happen in tandem with many other types of analysis. In this article, we discuss few important ones like SKU level profitability analysis, Service level determination, and network design.
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