Demand planning and Inventory management are closely related since accurate demand drives lower inventory levels. Inventory management has always been considered one of the most critical elements in supply chain since it directly affects overall cash flow cycles. Logimaxx has in-depth inventory management experience across multiple industries. Inventory costs are typically affected by the raw materials expense, work-in-progress time and materials, and finished goods, transportation, storage and handling, inventory administration, customer purchase orders, and shipping costs. Inventory management is not simply about setting min/max levels by item and warehouse, but more importantly it is the outcome of the customer promise, planning, forecast, transport, customer geography and several other components that optimizes inventory and its velocity.

Most corporate ERP systems have some tools with which they set inventory policies and report inventory to the balance sheet. However, the ERP focus is on reporting inventory, not managing it with the exception of minimum and maximum product stocking levels based upon some form of forecast or other basic algorithms. This leads to significant capital consumed in inventory, inventory carrying cost, obsolescence and can ultimately effect customer service levels. Worst impact is that the capital invested in inventory is stationary, it is not moving. This is the worst kind of capital consumption. Logimaxx offers assessment and analytical support for inventory management aligned with customer promises and needs that increases inventory velocity to reduce “at-rest” inventory strain on working capital.

Logimaxx inventory management solutions are always focused on capital. “Lean” and “Six-Sigma” principles aligned with capital flows are the ‘how” of our inventory optimization solution. We offer most comprehensive “end-to-end” inventory management solution that helps our customers optimize
inventory at multiple points within life cycle of a product. Our solutions address inventory optimization at:

• Manufacturing planning stage in form of Materials Requirements Planning (MRP)addressing:
  • Raw Material Inventory
  • Bill of Materials (BOM) Sequencing and Velocity
  • Work In Progress (WIP) Parts Inventory
  • WIP Subassembly Inventory
  • Inventory in Transit
  • Finished goods (FG) Inventory
• Distribution Planning stage in the form of Distribution Resource Planning
  • FG Inventory at Plant Warehouses
  • FG In-transit Inventory
  • FG Inventory at Regional Warehouses
  • FG Inventory at Local Distribution Centers
  • Consignment Inventory at Customer sites

Here are the key questions that Inventory Optimization team strives to answer as part of our solution:

• How to minimize working capital across a Supply Chain Inventory?
• How to minimize raw materials, finished goods, and in-transit inventory?
• How to minimize Obsolescence cost?
• How to minimize waste due to product change, expiration, damage or loss?
• How to minimize stock-outs?
• How to deploy Vendor Managed Inventory model from key suppliers?
• How to minimize consignment inventory needs at customer sites?