Inventory Predictions are Key to Ultriva Success
Cupertino, CA -- (SBWIRE) -- 07/25/2013 -- The Gartner IT Glossary explains that, “Demand forecasting applications incorporate historical and predictive customer demand information into production line and sales quotas.” Matters become more complex when extending the definition to an end-to-end pull process…still trickier when sensing customer demand and synchronizing supply.
Narayan Laksham, President and CEO of Ultriva, Inc., recently discussed, “Demand Forecasting Drives Accurate Inventory Predictions,” on the company’s website. Laksham noted, “Ultriva’s patent pending Inventory Optimization Tool uncovers opportunities to reduce inventory and identify parts for transition kanban replenishment. The ability to simulate changes in supplier lead time, lot size, and safety stock, ensures that projects can be shared with other planners for viewing purposes and projects can be categorized.”
Demand forecasting requires the ability to accurately simulate consumption and compute on-hand inventory for each day. The formula for these accurate predictions requires three variables:
- Consumption volume for each day of the interval in the data load
- Actual on-hand inventory for each day based on current replenishment methodology
- Projected on-hand inventory for each day based on kanban replenishment methodology
Historical data identifies the potential inventory savings while simultaneously forecasting part shortages. Simulation highlights the potential weakness in current replenishment methodologies. Typically the Min-Max methodologies used by ERP systems with reorder points, is the primary cause of excess inventory and material shortages. Since reorder points are not maintained they tend to go out of sync leading to higher inventory on-hand.
To read the entire blog click to link: http://web.ultriva.com/ultriva-blog/.
Ultriva (http://www.ultriva.com) empowers leading industrial, automotive, healthcare, aerospace, and defense businesses to operate more effectively and collaboratively by providing real time visibility and targeted actionable intelligence into inventory and material flows. Ultriva’s cloud-based platform leverages and seamlessly integrates with leading ERP and MRP systems, to deliver an end to end pull based replenishment model for 21st century enterprises such as ATK, CareFusion, Emerson, Ingersoll Rand, McKesson, Magellan, Regal Beloit, Thermo Fisher and more. Ultriva is a privately held, growing software company based in Cupertino, California. Follow Ultriva on Twitter @Ultriva.
Cynthia Leonard, Marketing Executive