For many businesses, inventory levels often result from the way things have always been done, and are thus managed only to a limited extent. They often do not meet the requirements of customers and sales or of production and assembly.

Maintaining a high service level is often impossible when inventories are poorly managed. High inventories also impact the balance sheet and increase the need for working capital. 4flow supports businesses from manufacturing and retail with the optimization of their inventories along the entire supply chain.

Inventory optimization is a key solution for the simultaneous improvement of customer satisfaction and security of supply in addition to reduced capital commitment.

4flow reduces inventory through analysis, targeted solutions and the introduction of standardized and optimized inventory management. If necessary, simulation studies are carried out to assess scenarios and alternatives. By way of a routine reevaluation of all processes, systems, and parameters of material management, inventories are made transparent and remain low. This approach can also be applied to optimize inventory levels in multi-tier, distributed supply chains with complex dependencies. Solutions to improve demand forecasts can also be useful.

The level of detail of all analyses and solutions is incrementally adjusted in a targeted manner. Cluster analyses as well as article-specific optimizations can be used.

Some of the concrete inventory reduction solutions 4flow offers to customers for joint implementation include:

  • Systematic revision of material parameters
  • Optimized assignment of procurement processes
  • Definition of target inventory levels for all value chain echelons
  • Establishment of tactical material workflows and systems
  • Integration of planning and scheduling

Typical results achieved by inventory optimization include:

  • Lower transportation costs by up to 40 percent
  • Targeted adjustment of inventories to match required availability
  • Transparency about causal relationships that influence inventories
  • Implementation of sustainable processes to avoid obsolete inventory
  • Achievement of quick-wins within a few weeks
Example of inventory optimization by 4flow
Example of inventory optimization by 4flow

The integration of transport optimization and material management can open up additional possibilities as a whole. For complex, intercontinental supply chains, 4flow also offers this integration as a managed service.

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