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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

Optimising inventory 2.0: demand patterns and product lifecycle.

The key points

  • Static reorder points aren't enough: demand patterns and product lifecycle keep changing the right planning.
  • Demand patterns (smooth, seasonal, sporadic) determine the forecasting method and the buffer size.
  • The product lifecycle requires carrying stock through introduction, maturity and phase-out.
  • Inventory 2.0 means: keeping parameters dynamic instead of setting them once and forgetting.

Why aren't fixed reorder points enough?

A fixed reorder point assumes constant demand. In reality it fluctuates: seasonally, with promotions, with the economy. A value that fits in winter leads to excess stock in summer. Dynamic planning means continuously updating the expected consumption from the forecast, instead of fixing it.

What does the product lifecycle change?

An article in introduction needs stock without history; here the estimate counts. In the maturity phase the classic formulas apply. In phase-out the logic reverses: instead of building buffer, you plan the sell-off, otherwise residual stock stays put. Anyone who ignores the lifecycle ends up building stock on exactly the articles that should disappear.

What does inventory 2.0 concretely mean?

Parameters aren't set once, but move along: forecast, safety stock and reorder point update with every new movement. That's not doable by hand, but the job of an inventory optimisation that computes per article nightly. The principle behind it is the three steps: forecast, optimisation, procurement.

A good test for the maturity of your planning: how quickly does your reorder point react to a dip in demand? If that takes quarters, you're still steering statically.

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

Inventory planning: the second step in inventory management.

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