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Safety Stock Diagnostic

Excess Safety Stock – How Much?

Safety stock to mitigate the risk of stocking out, sometimes equates to upwards of 40% of an organisation’s total inventory holding.  Using your purchase and sales data, our analytics software will;

  • Determine the ‘right’ safety stock level for your network considering observed demand and supply variability, target service levels and lead times.
  • Conduct detailed scenario modelling based on alternate demand, supply and service inputs.
  • Quantify the impact to your bottom line should you realise the benefits of reducing supply chain variability.
  • Tell you what you need to do to achieve those improvements.

Typical Benefit: 5% safety stock reduction opportunity

Who is it for? Supply Chain Managers looking to delve further into optimizing their inventory.

What you get? A customized report quantifying the potential inventory reduction to be gained from reducing supply and/or demand variability.

Did you know that to cover demand and supply variability, typically ~50% of inventory is needed just as safety stock? Even though it is a significant investment, safety stock optimisation is overlooked. How much inventory could be taken out of your supply chain if you reduced supply and demand variability? Our safety stock optimisation report answers this question. We take a deep dive into your supply and demand order history to determine just how much inventory you could save by focusing on reducing variability.

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