How AI is Revolutionizing Inventory Planning and Optimization – InventoryAI

Everywhere we look, artificial intelligence (AI) is pushing the boundaries of everything businesses and their people do. The opportunity to analyze vast amounts of data and make informed decisions in real time is not only increasing operational efficiency but also creating innovative models that drive higher cost savings and customer satisfaction. Inventory planning and optimization are no different.

Building a dynamic inventory view

InventoryAI+ offers unprecedented capabilities, including the development of a user-friendly dashboard. AI embedded inventory planning and optimization addresses top planning challenges, like configuring and updating exceptions using future and historical plan data.

The dashboard includes a library of widgets that pulls data from inventory planning and optimization sources and consolidates this knowledge into a single source, allowing for real-time updates and minimal latency. This innovation streamlines the planning process and enables smarter, data-driven decisions. More importantly, it prioritizes work based on an intelligence scoring system, leveraging financial details to determine inventory deficits or excesses.

Automating processes with alignment and intelligence

Another area where AI can prove beneficial is achieving high service levels at a lower cost despite sporadic demand. While traditional inventory calculations or simple rule-of-thumb approaches may not be practical in such scenarios, InventoryAI+ can help eliminate the risk of missed revenue opportunities and excessive inventory.

Automated inventory policy capabilities create probabilistic forecasts and determine appropriate safety stock levels. This approach simplifies the complex planning process, allowing planners to focus on other aspects of the business. Such a significant benefit is backed by accurate data and analysis, demonstrating the effectiveness of automated inventory policies in improving inventory management.

In addition, automated inventory policies simplify complex planning, reduce implementation complexity, and allow planners to focus on critical business areas. The data-driven approach ensures adaptability to changing demand patterns, further enhancing efficiency and effectiveness.

Remedying risks faster at lower costs

The decision on whether orders should be expedited depends on the person’s perspective. From the customer’s viewpoint, these actions may be considered successful. But from an operational standpoint, they may not be optimal in terms of costs and resource utilization.

InventoryAI+ addresses this challenge with a virtual pooling capability. Developed in collaboration with a large consumer goods customer, this functionality consolidates demand variability between closely located distribution centers in a defined region to fulfill customer orders seamlessly. Each location in the pool is given individual targets while leaving some capacity to fulfill orders when a distribution center is experiencing a shortage.

Another key advantage of using AI in inventory planning and optimization is the increased accuracy of lead times. While many companies still need consistency between actual lead times and the data recorded in their systems, AI opens the door to a more strategic approach to data management.

As part of Inventory AI+, the lead-time profile tool analyzes transactional data against captured lead times. It evaluates changes in actual lead times from one location to another, capturing any increases or decreases within a defined threshold. The solution also helps identify outliers in the data and allows for the setup of rules to reconcile master data with actuals.

Raising the bar on inventory management outcomes

AI is undoubtedly ushering in a new future for inventory planning and optimization. But your planners and stakeholders don’t have to wait to take advantage of this moment – Logility’s InventoryAI+ provides the comprehensive toolkit they need to get started today.

With InventoryAI+, you can reshape your inventory management practices with features like dynamic inventory views, automated processes, and virtual pooling. Embracing these advancements allows you to outpace competitors, adjust to market changes, and boost profitability. The future of inventory management has arrived – and Logility InventoryAI+ is ready to deliver transformative impacts on your planning, optimization, and business success.

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