Demand-Driven Inventory Optimization and Replenishment

Chapter 11A View of an Inventory Optimization Installation

What Does an Inventory Optimization Project Look Like?

Inventory optimization software installations tend to be created in eight distinct steps.

1. Software implementation
2. Design of the system and deciding on the scope
3. Data integration (creation of analytical base tables [ABTs])
4. Creation of the forecast process (if not supplied from another system)
5. Creation of the inventory process
6. Post-processing of results (evaluation of output and implementation of business-specific factors)
7. Test of the results
8. Automation and commissioning

As can been seen in Figure 11.1, project management is not forgotten in a standard implementation, but it is also not considered a classical stage like the others but rather an ongoing one. I will return to the project management aspect later.

Figure 11.1 Project Management Workflow

Regarding the implementation time, this naturally depends on the scope of the project and also on the availability of the data. From experience, it will be possible to start up and be up and running with a limited scope in 8 to 12 weeks. By limited scope, I mean a small assortment of products and starting with one echelon in the network and then expanding from there. I like to take this type of engagement process because so-called big-bang engagements can take months, if not years. The smaller, project-based process ...