Celonis for Inventory Management

Prioritize which materials to replenish based on impact

In the face of supply volatility, the quality of your safety stock levels is key to meeting customer demand. But frequent shifts in demand and a lack of inventory visibility into how inventory is actually being transacted make it challenging to keep your safety stock levels up to date.

Monitor consumption trends in real-time across systems and leverage machine learning analysis of true lead times and their standard deviations to ensure optimal safety stock levels.

Proactively identify material at risk of excess and obsolescence

Despite the pain of certain key material shortages, excess inventory is a dark horse threatening supply chain teams. The pace of changing consumption and replenishment patterns has challenged planners’ ability to know the right material and quantities to have on hand, resulting in write-offs of excess inventory.

Leverage intelligent recommendations based on true consumption patterns and lead times to improve parameters such as the minimum order quantity or reorder points and ensure your plans dynamically adjust for today’s reality.

Ensure on-time in-full deliveries

Unpredictable and frequent shortages due to shifting demand leaves supply chain teams in a constant fire-fight. But they lack the right visibility to be able to prioritize the most important materials based on their impact to other products and service levels.

Act off of a prioritized list of materials based on a material-level analysis of the days until stockout – and crucially, the impact each material has on dependent products and customer orders.

Pinpoint drivers of slow turnover across departments

Accelerating your turnover rate is crucial as the cost of inventory and carrying costs rise. But identifying controllable causes of demand-supply imbalance is near impossible without a holistic view of your supply chain processes to understand the drivers behind high inventory.

Operate with a real-time cross-process view across departments, including procurement and order management, to identify and intervene in instances where a simple change like excess purchasing by one region may be the culprit behind slow turnover.

Ensure you have the right material at the right time

Unfortunately both stockouts and excess inventory are inevitable. But in many cases, both result from companies ordering with lead times that are simply not in line with the reality of how suppliers now deliver - for example, when a 15-day lead time turns into a 20-day wait or items with a 30-day lead time routinely get delivered a week early.

Assess the true lead time of each critical supplier based on historical process performance and update the lead times in your master data to ensure all orders going forward leverage accurate estimates and provide sufficient days of cover.