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5 Benefits of Inventory Forecasting and Planning as a Service (IFPaaS)

Inventory Forecasting and Planning as a Service (IFPaas)

From increased supply chain and supplier issues to complexities associated with rapid ecommerce growth, organizations are increasingly challenged to deliver consistent inventory availability and profitability across all channels and locations in today’s dynamic omnichannel environment. In 2020, 82 percent of mid-market manufacturers either significantly reduced production or shut down completely as a result of the COVID-19 pandemic – and 83 percent of manufacturers report that their businesses will take at least a year to recover. Further contributing to inventory challenges, online consumer spending increased to $870.78 billion last year, up from $762.68 billion in 2020. This 14 percent increase signifies that consumers are not returning to pre-pandemic buying habits – and organizations must adapt to this new normal.

Inventory is one of the biggest investments that a company makes and can be a competitive differentiator when managed strategically, as it is one variable that impacts the customer the most. In addition to affecting the customer experience, decisions such as how much inventory to have on hand and where to locate and fulfill from can have a direct effect on cash flow, distribution operations, transportation costs and profitability.

With 73% of retailers reportedly struggling with inventory demand forecasting, anticipating demand for specific products is a major challenge for organizations, leading to too much or too little inventory – often placed in the wrong location. Traditional forecasting that focuses on purely statistical patterns is no longer adequate, as it does not account for external factors that relate to year-over-year trends and seasonality. Many additional components should be considered to predict customer demand, and even more importantly, the influence of these components should be evaluated simultaneously (not one by one) to optimize the combined effect. Accurate insight is needed for demand patterns, product similarities, price sensitivity, promotions response and demographics.

Five Benefits of Inventory Forecasting and Planning as a Service (IFPaaS)

enVista’s inventory forecasting and planning as a service (IFPaaS) subscription allows retailers, distributors and manufacturers to leverage enVista’s comprehensive inventory optimization solutions, including AI-powered dynamic inventory allocation capabilities, on an ongoing basis to remain ahead of supply and demand variability and to optimize inventory by echelon and channel. The top benefits of IFPaaS include:

  • Easily adapt to evolving market changes – Optimize your product-to-market strategy with an integrated product lifecycle management approach.The right people, processes and technology are vital to be able to effectively increase speed-to-market, minimize redundancies and decrease the cost to evolve quickly to changes in the market.
  • Optimally position inventory across the network – Taking a holistic, multi-echelon approach to optimally position inventory helps reduce the extended supply chain inventory while service levels increase due to a broader assortment closer to customers – with fast, automated replenishment.
  • Maximize profitability and cost savings – Analyzing product attributes from sales and demand profiles to supply availability and cost, then utilizing these attributes to segment your supply chain’s fulfillment and inventory logic into targeted strategies drives efficiencies up and costs down.
  • Meet customer demand and improve customer service – Meet customer demand and reduce out-of-stocks through accurate inventory forecasting and improve customer service by positioning inventory closest to the customer.
  • Drive sustainability – Gain a holistic view of your supply chain to manage and minimize costs and reduce inventory by ensuring the right product is deployed in the right place, at the right time – reducing safety stock and markdowns. Understand forecast performance across statistical and value add activities along with historical demand to inform inventory strategy and correlate supply impacts to minimize inventory investment and waste.

The solution offering enables the above benefits and more, and can be delivered alongside enVista’s highly extensible, cloud-native omnichannel order management software with enterprise inventory availability and AI-powered dynamic inventory allocation for powerful results. As part of enVista’s IFPaaS offering, enVista’s team of global inventory management consultants complete a demand forecasting analysis, create an initial inventory model, and then manage and monitor inventory performance on an ongoing basis, acting as an extension of the client team. Make your inventory your competitive advantage today. Let’s have a conversation.TM

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