Optimizing inventory in the supply chain !!!
Smart SCM stock optimizer
SMART SUPPLY CHAIN BASED ON AI
ARTIFICIAL INTELLIGENCE – MACHINE LEARNING
Machine learning models can predict customer demand by taking into account historical sales data, seasonality, sales promotions, but also some external factors that the human factor cannot predict, such as the weather forecast for each location where each retail facility is located, time windows, traffic conditions, etc. The accuracy of this forecast is 90%.
Smart SCM works on the basis of an AI machine learning model that uses information such as sales history, seasonality, promotions, trends, external factors such as the weather forecast and patterns invisible to humans in order to optimally evaluate WHAT to order, WHEN to order and HOW MANY pieces to order, in order to replenish stocks to the optimal level.
Smart SCM only orders what it is sure will sell in the target period. It takes all the mentioned factors into the calculation, in order to get a forecast whose accuracy exceeds 90%.
Smart SCM automatically detects which items are selling best and prioritizes them, while delaying restocking items in low demand until needed. He will not remove them from the offer, but will postpone their replenishment until the moment when he judges that it is necessary to replenish those items as well.
What is SCM
Smart SCM (smart supply chain management) is software based on artificial intelligence (machine learning) that optimizes inventory in the supply chain, solves the problem of excessive inventory as well as the problem of lack of inventory (out of stock) and missed sales and establishes the optimal level of inventory both in the warehouse and in retail stores.
Smart SCM automatically determines the optimal stock level, safety stock and re-order point for each item in each store and in each warehouse.
Smart SCM can establish a “smart supply chain” based on artificial intelligence, which can work fully automatically without the participation of the human factor while processing a large amount of data in a very short time interval.
Smart SCM takes into account external factors such as the weather forecast so that it will not order goods that are affected by weather conditions (drinks are consumed more when the weather is hot, air conditioners are bought less when the weather is cold, etc.) and in this way it affects the stocks in stores.
Smart SCM daily collects data on realized sales and automatically creates a replenishment order and sends it to ERP.
Smart SCM can be applied in retail stores, but also in wholesalers, distribution centers, distribution and manufacturing companies.
Smart SCM increases warehouse productivity and allows you to store more goods in the warehouse, and get rid of non-profit and value-added items and allows you to free up space for fast-moving, profit-making items.
Smart SCM with the help of artificial intelligence makes a sales forecast (prediction of customer demand) and orders only the quantity of goods that it is sure will sell. The accuracy of the forecast is about 90%.
Smart SCM provides demand projections for all products, in each store and in each warehouse, and automatically generates a replenishment order when inventory drops to replenishment levels.
BENEFITS FOR THE COMPANY
Smart SCM solves the problem of overstocking in warehouses and stores, as well as bottlenecks due to overcrowded warehouses and/or stores. This causes high logistics costs and a slowdown in sales, resulting in lower company revenues.
Smart SCM solves the problem of lack of storage space in a warehouse or retail store and optimizes storage capacity in the warehouse and in the store.
Smart SCM solves the problem of OUT OF STOCK and lost sales.
Smart SCM frees up capital tied up in excess inventory and accelerates company cash flows.
Smart SCM automatically orders exactly the amount of goods that will be sold between two deliveries with an accurate sales forecast of about 90%.
BENEFITS FROM INVENTORY OPTIMIZATION
The optimal stock level gives the possibility of placing a larger amount of goods in the warehouse and retail store.
Optimal stock level gives the possibility to give priority to the items that really bring profit.
Smart SCM gives the opportunity to apply the Pareto rule (20% of items generate 80% of sales revenue).
There is no more "dead lager" that does not bring profit and incurs costs.
BENEFITS IN NUBERS AND PERCENTAGES
30-40% Reduction inventory
10%-30% Reduction of lost sales
10%-30% Increase in inventory turnower
10%-30% Cash flow acceleration
15%-30% Increase in inventory efficiency
10%-30% More space for storing goods
10%-30% Lower procurement costs
96%+ Increase in product Availability
30% Reduction in product obsolescence
15% Increase in full-price sell
6%+ Revenue growth
10%-40% Lower total logistics costs
HOW SMART SCM SAVES MONEY
Smart SCM allows you to avoid the situation where you have to pay the supplier for the goods you have not yet sold, instead it accelerates the sale and allows you to pay the supplier after you have sold the goods, thus the supplier finances the sale.
No more OUT OF STOCK situations where there are not enough items requested by customers, or they are not in stock at all. This generates lost sales.
Smart SCM accelerates sales and increases sales at full price.
No more overcrowded and congested stores and warehouses with limited storage space making it difficult to shop in stores and difficult to fulfill orders in the warehouse.
Capital tied up in slow-moving items and in dead stock that does not bring profit is freed.
A higher inventory turnover in the warehouse generates a faster turnover of the company's capital and faster cash flows.
