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The Working Capital System · four modules that build on each other
01Working Capital Designyour inventory strategy02Integration Accelerator™the ERP connection03Order Steering™ordering rules for your purchasing04Managed Operationsongoing operations
ToolWorking capital calculatoryour potential in numbersKnowledgeInsightshands-on knowledge on inventory and purchasingTechnologyEazyStockthe inventory-optimisation softwareTechnologyEazyERPthe middleware to your ERP
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Working Capital Designyour inventory strategyIntegration Accelerator™the ERP connectionOrder Steering™ordering rules for your purchasingManaged Operationsongoing operations
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Working capital calculatoryour potential in numbersInsightshands-on knowledge on inventory and purchasingEazyStockthe inventory-optimisation softwareEazyERPthe middleware to your ERPweclappEazyStock for weclappSelectLineEazyStock for SelectLineAlphaplanEazyStock for AlphaplanpixiEazyStock for pixiOpaccEazyStock for OpaccSAP Business OneEazyStock for SAP Business OneDynamics NAVEazyStock for Dynamics NAVBusiness CentralEazyStock for Business CentralAcumaticaEazyStock for AcumaticaComarchEazyStock for Comarch
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DEEN

Inventory planning: the second step in inventory management.

The key points

  • Inventory planning is the step between analysis and ordering: here you set targets and parameters per article class.
  • At the core of planning are target service level, safety stock and order rhythm per class from the ABC/XYZ analysis.
  • Planning happens at class level, not per individual article: that's what makes steering thousands of articles possible at all.
  • Without planning, ordering falls back on gut feeling and case-by-case decisions.

What is defined in inventory planning?

For each article class you define three things: the target service level (how available should the class be?), the safety-stock level (how much buffer does that justify?) and the order rhythm (continuously at the reorder point or in fixed cycles?). These specifications are the levers that later steer every single order.

Why do you plan at class level?

Nobody maintains targets for 8,000 individual articles. The classes from the ABC/XYZ analysis bundle articles with similar behaviour. You plan nine classes instead of thousands of articles, and the rules are inherited automatically by every article in them. New articles inherit their class's rule, without manual work.

How often must the planning be revised?

The classification turns over, and so does the planning. At least quarterly, class assignment and targets belong on the test bench: an article that has moved from CZ to AX needs a different target. In an ongoing operating model this happens as routine, not as a project.

The most common planning mistake is a blanket service-level target for the whole warehouse. Why that gets expensive is in the article on service level.

Keep reading

Inventory & Purchasing

ABC/XYZ analysis: a steerable assortment in 4 steps.

Inventory & Purchasing

Never out of stock again: automatic demand forecasts in EazyStock.

Inventory & Purchasing

From slow movers to fast movers: why you shouldn't procure every article the same way.

Inventory & Purchasing

Inventory forecasting: forecasting with fluctuating demand.

Inventory & Purchasing

Inventory optimisation in 3 steps: forecast, optimisation, procurement.

Inventory & Purchasing

Logistics vs. supply chain management: definition and differences.

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