INVENTORY POLICY MODELING
Set inventory policy in line with your business goals
Balance your inventory levels and financial investment with a data-driven inventory policy based on each product’s classification and risk profile. Reduce the impact of disruptions by modeling and measuring the impact of different policy decisions to reduce the risk of overstocking or stock-outs.
Classify products to increase visibility
Group stocked products according to their sales and velocity and set the replenishment cycle and target fill rate in line with each product’s classification. Gain immediate visibility into each classification’s policy such as stock value, calculated model stock value, average monthly demand, achieved fill rate, and target fill rate.
Set the right safety stock for stocked items
Safety stock is designed to mitigate supply and demand risk. When the stock level reaches this minimum level, the stock will automatically be replenished to fill the forecasted demand and ensure that the target fill rate is achieved.
Identify obsolete and non-stocked items
Setting the correct stocking indicator is essential to replenishment and determines what data is applied when calculating the recommended order. Non-stocked items are only replenished when a customer places an order and the goal is to hold zero stock. Obsolete items will never be ordered, there can be stock, and it can be sold, however the stock is never replenished.
Refining your inventory policy
Set the inventory policy at a national level or by product or location if you have multiple stocking locations for an item. The policy allows for flexibility, enabling you to create manual policy overrides to a specific policy for an individual product, location, or supplier.
Creating data-driven inventory policy
Your customized dashboard gives you at-a-glance visibility and prescriptive, prioritized recommendations to drive inventory optimization. Netstock enables you to set smart inventory policies that support your business goals, drive rapid and meaningful improvements and realize significant capital savings.
Set target fill rates
Set fill rates by prioritized categories and track performance in real time.
Set ordering policies that balance dynamic lead times and supply risk to order the right amount at the right time to hit fill rate targets.
Netstock automatically generates optimal orders based on your data-driven inventory policy — and seamlessly feeds that order information back into your ERP system.
See everything Netstock can do for you
Generate recommended orders to restock products across your network and create a balanced inventory holding. Create risk-optimized orders for each SKU and automatically send them to your ERP system with a single click.
Sales & operations planning
Break down silos and create a central source of truth to drive confident, synchronized decision-making. Align operations and supply chain plans with sales, marketing, and financial strategies.
Supplier performance monitoring
Monitor and measure product-specific lead times and overdue orders. Leverage supplier performance metrics to negotiate terms that reduce lead times and mitigate supply risk.