Inventory Management Technology Reduces Inventory by 20-30 Percent According to New Research from Aberdeen Group.
BOSTON -- A recent in-depth market study from Aberdeen Group, which included several customers of ToolsGroup, a leader in inventory optimization software, points to effective inventory management as a key area of untapped value. The research in "The Technology Strategies for Inventory Management Benchmark Report" reveals that inventory management technology is the top supply chain application area of interest for companies seeking to increase profitability across their manufacturing and complex distribution operations. Inventory management technologies include inventory optimization, network design, customer level forecasting and inventory collaboration.
ToolsGroup will report these findings and showcase its DPM inventory optimization software as part of the Learning Exchange on Monday, Oct. 16 at the Counsel of Supply Chain Management Professionals (CSCMP) 2006 Annual Conference in San Antonio.
"Inventory has been and continues to be the lifeblood of supply chains," said Nari Viswanathan, research director, supply chain at Aberdeen Group. "As the nature of supply chains change, so must the policies used to manage inventory. The truly visionary companies are leveraging their inventory as a competitive weapon and have moved to network-based inventory management versus doing it a facility or company level."
The Aberdeen study identified other key recommendations for companies related to inventory management:
* Evaluate a commercial multi-echelon optimization solution
* Leverage investments in existing demand management tools and evolve toward customer-level forecasting
* Look to do usage-based supplier inventory collaboration
* Increase supplier inventory collaboration
* Actively manage in-transit inventory through supply chain visibility
"For distribution-intensive businesses, the need for optimizing inventories is growing," said Joseph Shamir, CEO of ToolsGroup. "To achieve world-class service levels, the inventory mix has to be optimized and re-optimized regularly, in step with the speed of change in the business environment. Inventory optimization technology needs to be part of every company's supply chain strategy to maximize margins for a competitive advantage."
To learn more about best practices in inventory management, download the complimentary copy of the full Aberdeen report, "Technology Strategies for Inventory Management," by clicking the link below or copying and pasting it into a Web browser. This report contains characteristics for best in class companies and benchmark findings from Aberdeen's overall inventory management research.
About Aberdeen Group, Inc.
Aberdeen provides fact-based research and insights focused on the global, technology-driven value chain. Aberdeen's benchmarking, market and solution assessments, sales acceleration programs, and conferences support Global 5000 value chain and technology executives -- and the solution providers who serve them. For more information, visit http://www.aberdeen.com or call 617-723-7890.
ToolsGroup optimizes inventory in the finished goods supply chain. Its powerful solutions optimize multi-echelon distribution chain inventory, from assembly of finished goods to the end consumer, and from strategic network design to daily operations. Recognized by ARC Advisory group as the #1 inventory optimization firm, ToolsGroup allows supply chain managers to meet demanding service levels, while reducing inventory and operating costs. With more than 100 customers in 29 countries, it is the most experienced inventory optimization software provider worldwide. For more information on ToolsGroup and its solutions, please visit www.ToolsGroup.com.
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|Date:||Oct 13, 2006|
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