How to Achieve Supply Chain Equilibrium

Thoughtware Article Published: Apr 25, 2014
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For most retailers, distributors and manufacturers, inventory represents their largest single asset—and their largest single expense. Stock-outs result in lost sales, yet excess inventory compromises cash flow. Since inventory holds such significance, as well as the potential to directly impact an organization’s profitability, it should be actively managed to achieve balance.

How can you predict the optimal level of inventory necessary to keep internal and external customers happy while also avoiding costly overstocking?

Introducing Sage Inventory Advisor

Sage Inventory Advisor is a cloud-based application that integrates with your Sage 100 ERP, Sage 500 ERP or Sage ERP X3 solution and delivers actionable intelligence about your company’s inventory. Here are some advantages of using Sage Inventory Advisor:

  • Rapid implementation – From a few hours to a couple days
  • Integrates with your existing ERP system
  • Cloud-based solution means no additional IT demands
  • Affordable – One-time activation fee and monthly subscription
  • Quick ROI – Customers report ROI realized within three months
  • Accessible on mobile devices or via Web browser

How Does It Work?

Each night, Sage Inventory Advisor uploads data from your ERP to the Sage cloud. In the morning, you receive essential information, such as problem items needing attention and recommendations for what needs to be ordered that day in a clear, concise dashboard.

Why Do I Need a Tool Like This?

Your ERP system is very good at driving and managing day-to-day inventory activities and providing accurate valuation calculations. However, it may not provide the relevant analysis and forecasting capabilities that allow you to dynamically adjust your company’s inventory to demand—avoiding both stock-outs and costly surpluses.

What Can It Do for Us?

Consider it a daily diagnostic tool that’s hard at work identifying the inventory that most impacts your bottom line. It’s also a powerful forecasting tool, using your ERP data to make informed recommendations about what and how much to buy. Customers using Sage Inventory Advisor report the following benefits:

  • 10 percent to 15 percent excess inventory reduction and improved inventory turns
  • Working capital reduction and freeing up 15 percent to 20 percent of cash tied into inventory
  • 2 percent to 10 percent fill rate improvement and eliminated stock-outs
  • As much as a 50 percent reduction in time spent on forecasting

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