Library
SmartOps knows successful inventory optimization and planning comes from strong, reliable information. And that’s why we’ve created this online Library, filling it with the analyst research, case studies and white papers to help you make your most educated decisions.
White Papers
SmartOps believes in continual education, and that’s why we’ve drawn on our internal expertise, and that of our clients, to create white papers on the inventory planning and optimization topics that planners request most.
- A Primer on Inventory Optimization (IO) from SmartOps This helpful overview document details the powerful thinking behind the SmartOps Inventory Optimization solution. With a holistic view of inventory management that takes into account all the systems, sub-components and ever-changing variables that comprise the supply chain— from raw materials and their delivery to differing stocking needs in branches across the globe, SmartOps MIPO offers a unique, flexible and scalable solution. Register/Login to Download
- Caterpillar ’s Building Construction Products Division Improves and Stabilizes Product Availability In 2001, Caterpillar’s Building Construction Products Division (BCPD) began a project to reduce and stabilize order-to-deliver times (termed product availability within Caterpillar) while reducing cost and inventory. Using a six-sigma method and a multi-echelon inventory optimization model, BCPD sets dynamic inventory policies for assembled machines stocked at the assembly plant and for subassemblies and components stocked at the assembly plant and supplier locations. The project has improved product availability, reducing the mean time for orders with identified customers by 20 percent and reducing the standard deviation of product availability for all orders by 50 percent. BCPD’s initial implementation and resulting improved product availability enabled BPCD to win more orders (a two percent increase in revenues) and reduce total chain inventory by 16 percent, and it has motivated other Caterpillar manufacturing and assembly facilities to replicate this project across their supply chains. Register/Login to Download
- Enterprise Inventory Optimization (EIO) Empowers Companies to Outperform. In any economic climate, Enterprise Inventory Optimization (EIO) provides every company with a readily quantifiable, sustainable competitive advantage. During growth periods, EIO enables companies to adapt quickly to rising demand in ways that help capture new market share and ensure greater revenue and profitability. Likewise during downturns, EIO supports and creates the flexibility to trim inventory with greater precision to make the most of every available opportunity while freeing up precious cash flow. Easily integrated with existing business systems, EIO can be up and running in 90 days or less, yielding immediate performance and balance-sheet benefits, and delivering the highest return on investment of any supply chain project. Register/Login to Download
- Implementing Seasonal Logistics for Finished Goods Distribution at Deere & Company’s C&CE Division. In 2004, Deere & Company’s Commercial & Consumer Equipment Division engaged in a new logistics initiative to further enhance its outbound distribution network. The goal was to offer faster and more reliable replenishment to 2500- North American independent dealers while keeping logistics costs in check by deploying different tactics during the peak (February-July) and off-peak (August-January) selling and shipping seasons. Deere and SmartOps worked together under a shared reward contract based on actual cost reductions accomplished (that are additive over the benefits that may have accrued for other reasons). Through careful analysis, validation and verification of data available, the team was able to develop detailed models of the current and alternative distribution systems. By formulating the key replenishment and transportation decision and constraints as a mixed-integer mathematical program, the team was able to use powerful off-the-shelf solution software to find improvements. The ability to fix variables to perform what-if analysis also helped in the acceptance of the recommendations. Over a period of three years, Deere significantly improved service to 82% if their dealers (without any reduction in service to the other 18%) while reducing logistics costs by over $10 millions. The novelty of this work stems from the dynamic seasonal optimization of Deere C&CE distribution network and replenishment decision as a way of meeting service and cost reduction mandates, the creative use of tactical network optimization OR models and what-if analysis to meet the implementation goals under time constraints, and in the scrutiny given to the results. Register/Login to Download
- Inventory Target Setting in an Advanced Planning Environment
In 2003, Bayer MaterialScience LLC recognized an opportunity to build upon the benefits of implementing a traditional advanced planning process. SmartOps Corporation and Bayer MateriaScience partnered on a Proof of Value project to determine the potential benefit of combining a complementary third-party application with existing SAP modules. After identifying significant potential savings from inventory reductions, Bayer MaterialScience and SmartOps began a formal implementation project in 2004 to utilize SmartOps’ Multistage Inventory Planning & Optimization (MIPOÔ ) to calculate inventory safety stocks needed for the material requirements planning process. Over the course of 2005, the program was implemented across the entire NAFTA planning process. The project has resulted in a significant, measurable inventory reduction while maintaining customer service targets. As a result of the success of the initial project, expansion to other areas of the business is under consideration.
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