Optimizing inventory isn’t easy because a significant portion of spares in after-service parts and maintenance, repairs, and operations (MRO) supply chains are slow movers and contribute to low inventory turns. Simple inventory control methods and high number of slow moving stock keeping units (SKUs) fail to optimize inventories and lead to low inventory turns and fill rates. Another factor that hinders optimization of inventory levels is the limited availability of the right skillsets like statistical modeling and accurate and timely updates of parameters used in modeling. Most of these challenges can be overcome with a mix of scientific modeling, knowledge process outsourcing (KPO) and the right technology. Here are 5 elements essential to the mix

1. @Infosys_bpo #SCM
THE SALES AND FULFILLMENT (S&F) SERIES
5 elements of optimized inventories
in supply chains

2. @Infosys_bpo #SCM
5 elements of optimized inventories in supply chains
THE SALES AND FULFILLMENT (S&F) SERIES
A significant portion of spares in after-service parts and
maintenance, repairs, and operations (MRO) supply chains are
slow movers and contribute to low inventory turns. Simple
inventory control methods fail to optimize inventories and lead
to low inventory turns and fill rates. However, by focusing on
5 elements, organizations can overcome the challenges in
inventory optimization.

3. @Infosys_bpo #SCM
5 elements of optimized inventories in supply chains
THE SALES AND FULFILLMENT (S&F) SERIES
1
Robust scientific
models based on
statistical modeling
can improve
inventory
parameters like
target service levels,
fill rates, lead times,
and safety stock
2
Inventory
optimization is a
continuous process
and requires a strong
process-oriented
approach to ensure
parameter values
and supply chain
behaviors are
captured and
updated regularly
SCIENTIFIC INVENTORY
MODELS
STRONG PROCESS
ORIENTED APPROACH

4. @Infosys_bpo #SCM
5 elements of optimized inventories in supply chains
THE SALES AND FULFILLMENT (S&F) SERIES
3
Platforms are
integral to the whole
optimization process
and can simplify
extracting, cleansing
and normalizing
data, while
validating inventory
forecast models
4
Knowledge process
outsourcing (KPO)
enterprises have
developed
innovative and
mature shared
service delivery
models that can be
leveraged to
optimize the
inventory process
TECHNOLOGY
PLATFORMS
PROCESS MANAGEMENT
WITH KPO PARTNERS

5. @Infosys_bpo #SCM
5 elements of optimized inventories in supply chains
THE SALES AND FULFILLMENT (S&F) SERIES
5
Cloud enables
software vendors to
offer innovative
pricing models such
as pay-per-use and
monthly
subscription to avoid
upfront investments
and reduce the total
cost of ownership
(TCO) of IT
CLOUD-BASED
SOLUTIONS

6. @Infosys_bpo #SCM
5 elements of optimized inventories in supply chains
THE SALES AND FULFILLMENT (S&F) SERIES
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