Logility, Inc., a leading provider of collaborative supply chain optimization and advanced retail planning solutions was recently issued a patent for a tool that delivers more accurate inventory counts.
Supply chain solutions generally build demand curves based on demand forecast and customer orders, which then generate curves for demand planning and can result in higher inventory for sourced good. With its patent, the company’s Logility Voyager Solutions can develop curves that integrate demand, customer orders and inventory, delivering a more accurate total plan.
“When a minimum is required by a supplier, companies will proportionally increase a replenishment order to meet the minimum. For many companies, this approach can and has led to inflated inventory,” the company said in a statement.
The new solution allows companies to benefit from composite curves that look at history and other relevant attributes to satisfy the supplier’s minimum requirement to balance inventory with future demand. Supply orders can be planned at the aggregate level while being scheduled at the detail level.
“This patent further emphasizes the unique advanced capabilities to optimize complex sourcing and production decisions that companies will only find in Logility Voyager Solutions,” said Mike Edenfield, Logility president and CEO. “The use of composite curves allows companies to plan at higher levels of aggregation such as style and style/color and execute at more granular levels such as SKU. This drives increase productivity and precision while reducing working capital and improving service levels.”