Optimize your working capital while ensuring supply chain resilience
Increase supply chain resilience by optimal sizing and positioning of stock buffers with Avatar Inventory Management. Minimize manual effort through a data-driven inventory analytics approach and segmentation strategies.
Resilience through Inventory Management
Avatar Inventory Management minimizes your working capital by perfectly allocating and sizing inventory parameters and stocks with advanced multi-echelon optimization.
Increased Supply Chain
Avatar’s inventory management capabilities improve service levels and optimize lead times by strategic decoupling of the supply chain. Thereby, non-deliveries are avoided and inventory levels or inventory holding costs are balanced against potential disruptions.
Improve inventory parameters by applying automated segmentation algorithms to reduce the complexity and manual effort required to manage a diverse product portfolio and volatile product lifecycles.
Stock Transparency Improves
Supply Chain Performance
Create transparency for the root causes of overall supply chain performance by analyzing master and transactional data to avoid stock issues. Use various analytic tools like Avatar Dead Stock Analyzer to easily identify issues and their root causes.
Requirements Planning (DDMRP)
Avatar complies with the complete Demand-Driven Operating Model. Through coordinated decoupling points, lead times are compressed, and these buffers are used to reduce end-to-end variability by applying DDMRP principles.
Transition from a just-in-time to a just-in-case inventory strategy by minimizing required inventory levels. Building the right decoupling points and inventory buffers throughout the supply network increases resilience.
Optimal Inventory Allocation & Right-Sizing
Avatar enables optimal allocation of inventory within a global supply chain according to supply chain configuration and characteristics to meet customer and procurement operations and procurement expectations through optimized lead times and pooling effects.
Optimal inventory allocation and sizing are achieved using multi-echelon inventory optimization techniques, approaches defined in the DDMRP concept, or supply chain resiliency requirements.
Also, Avatar Strategic Risk and Resilience Capability Management enables the proactive consideration of disruptive supply and demand scenarios by placing strategic inventories, risk, and policy stocks.
Rule-based and AI-driven parametrization powered by Avatar automatically clusters the product data and facilitates continuous attribute setting. This enables the management of diverse product portfolios of global supply chains, short product lifecycles, and high complexity to cope with rapid changes in demand and supply. Segments are automatically created based on flexible criteria such as volume, sales, variability, forecast error, or the coefficient of variation, and risk-free evaluation of parameter adjustments is supported by multi-scenario planning.
This approach allows for optimal inventory parameters while minimizing the effort of the planner who in turn can focus on exceptions and other value-adding tasks.
Avatar overcomes common challenges in the field of inventory management by providing relevant KPIs and detailed analytics on overall inventory trends and distribution, including buffer coverages, obsolete stock, excess inventory, and safety stock usage.
Process mining techniques are used to identify key inventory drivers such as continuous manual overwrites or missing parameter updates.
The Avatar KPI framework creates visibility on root causes, drivers, missing master data, and insufficient transactional data quality. It thus improves decision-making and planning performance.
Demand-Driven Material Requirements Planning (DDMRP)
Avatar is the solution of choice for inventory management based on the DDMRP principles as defined by the Demand Driven Institute (DDI). It covers all the functionality required to position and protect decoupling points, resulting in compressed lead times, reduced inventory, increased service levels, and improved customer satisfaction.
Avatar’s DDMRP capabilities include sophisticated algorithms to calculate decoupled lead times even in complex multi-sourcing supply chains. They help to select the right ADU calculation method considering historical demand and sales forecasts, and allow you to determine suitable order spike thresholds and horizons.
The solution provides your experts with all the tools they need to efficiently optimize model configurations based on business rules. In addition, users benefit from AI-powered recommendations to adjust segments and profile assignments. Parameter decisions can be quickly simulated and evaluated without risk.
Avatar supports an end-to-end planning workflow by using S&OP and S&OE information like constraint demand, inventory build-up, and pre-production decisions directly for DDMRP parametrization. It also provides prioritization signals for the Avatar Demand-Driven Operating Model feature.
Get to know the world-wide first supply chain planning solution to infuse resilience, intelligence, and excellence into your operations with zero latency on all levels.