Ability Solutions, a leading developer of supply chain optimisation solutions, has taken the wraps off Version 5 of Ability - Inventory Optimization, the latest release of the company`s flagship supply chain planning solution.
Walter Leicher, vice president for product strategy for Ability - Inventory Optimization, says the new product brings advanced supply chain planning functionality, previously only available in expensive enterprise-level software, within the price range of medium-sized companies.
"Ability - Inventory Optimization Version 5 allows users to factor real-world variables - such as cash and customers - into inventory planning and management, rather than depending on theoretical assumptions. This gives medium-sized companies the ability to slash inventory holdings, cut costs, uncover new revenue generation opportunities, and maximise inventory investments," adds Leicher.
One of the key features of Version 5 is the Autobox demand forecast engine based on the Box-Jenkins methodology, which boosts the power of the demand planning function in the product. According to Leicher, the engine applies an infinite number of algorithms to every line item and conducts forecasts based on factors such past sales, as well as lost sales and periods of exceptional demand, enhancing the customer`s ability to make accurate demand predictions. The product also allows users to set cause-and-effect parameters to measure the impact of factors such as promotional pricing or price increases in demand planning forecasts. Demand forecast processing can be shared across PCs and servers in the local area network (LAN), sparing companies the need to invest in powerful enterprise servers to run the application. Users can set rules and priorities that determine how the application dynamically allocates this processing power.
Other enhancements empower companies to make strategic financial decisions that make a difference to the bottom-line, says Leicher. Customers can set safety buffers in the application to reduce the risks of holding obsolete stock in their inventory, for example, by limiting inventory to meet the demand anticipated for 30 days. In addition, the product helps companies to strike the right balance between the most economic stockholding level and the optimum customer service level. Effective product life cycle management is also facilitated by Ability - Inventory Optimization.
The Finite Capital Utilization function in the product enables companies to set a ceiling on the amount of new stock ordered according to a set of financial constraints. Within the same mechanism, an order boosting function allows companies to fill containers by volume or mass before shipment to ensure optimal use of their logistics and transport infrastructure.
The alert and event management features in Ability - Inventory Optimization act as a nervous system for the business that constantly monitors the supply chain for signs of pain. Parameters such inventory, demand patterns, and variances in delivery time are kept under constant surveillance.
When a problem arises, an automated message can be triggered and delivered instantly to someone in the organisation who can take corrective action, or an alert can be sent to another system, for example, in the form of an order to a supplier for replenishment of depleted stock.
Version 5 also includes a host of features that ease collaboration between the organisation and its trading partners. This allows the players in the supply chain to share information and draw solid business intelligence reports from the data they exchange
The product features snug integration with transactional enterprise resource planning (ERP) systems. A new data import utility speeds up the process of importing data from enterprise systems into the application, easing implementation and allowing for a faster return on investment.
Ability Solutions plans to expand the product`s functionality with the release of a separate Scenario Planning module for Ability - Inventory Optimization in near future. Customers will be able use this module to conduct "what-if" scenario tests on a range of variables such as inventory, cash-flow, bulk buying discounts, creditors, debtors, and promotions.
This will allow companies to analyse the potential effect on their business of moves such as slicing debtors from 60 days to 30 days, or increasing stock held in inventory to benefit from bulk discounts from suppliers.
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Ability Solutions, a subsidiary company of JSE-listed Ixchange, is a leading provider of supply chain optimization solutions. We help companies accelerate their profitability by providing specialist solutions that address the dynamic needs of businesses in the New Economy. Ability`s flexible, scaleable and robust solutions address the complex problems distributors face as they seek to drive profitable growth. Ability`s solution set includes the Ability"a - eCommerce Fulfillment, Ability"a - Inventory Optimization and Ability"a - Financial Management solutions.
Ability provides targeted solutions intended to guarantee its customers` ability to realize a rapid return on investment as a result of streamlining their supply chain process, improving their operational efficiencies, effectively managing their suppliers and increasing customer satisfaction. Ability has offices worldwide, with headquarters in Atlanta, GA., USA.
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