Healthcare Supply Chain Company maintains fill rate, reduces inventory by $1.1 million. This company distributes healthcare products to hospitals around the Midwest. They based safety stock on weeks-of-supply, increasing the weeks-of-supply for critical items. The used a popular forecasting software to forecast demand. Setting target inventory levels was turned over to Optimal Velocity’s Demand Forecaster™ and Inventory Optimizer™. A more accurate forecast, plus optimal safety stock levels resulted in a fill rate of greater than 99.9%, and inventory reduction of $1.1 million!
Optimal Velocity reduces raw material waste and optimizes inventory to reduce short shipments. A specialized food producer was struggling to manage service level and waste of its perishable products. When inventory was too low, customers complained about on-time delivery and shortages. When inventory was too high, product went out-of-date.
A well-managed company with a good inventory system, once optimized with our products, got a lot better. A mid-sized industrial lubricants distributor was managing inventory using ABC classification to set service levels and safety stocks for 1500 SKUs.
Optimal Velocity customized software to meet goals. A cheese distributor serving major grocery store chains throughout the United States had an overall service level commitment to their customers of 99.5%. This goal required high inventory levels.