With its new Service Level Booster, our subsidiary SCT GmbH is presenting a software tool for the first time that uses artificial intelligence to determine how delivery capability can be increased with reduced inventories in order to always be able to supply customers on time. The Service Level Booster optimizes the required safety stocks for the goods in stock so that this is done at the lowest possible cost. Its objective is to achieve the level of delivery readiness that can be set to meet demand with the lowest possible inventory values. Companies already optimized with conventional MRP systems can reduce their stocks by a further 3 to 4%.
30 to 40 thousand euros can be saved per million euros of finished goods inventory.
The benefits are even clearer for companies whose scheduling management has not yet been automated. The use of the tool is equally interesting for medium-sized industrial companies with warehouse production and trading companies and, with long-term costs of around EUR 4,000 per year, pays for itself in the month of installation, as it achieves delivery capability with reduced inventories: It frees up significantly more capital once again and also ensures significantly more satisfied customers when delivery readiness is increased.
Thanks to artificial intelligence, the Service Level Booster calculates the ideal stock levels extremely quickly and with minimal effort: within 90 seconds, the AI’s logic has determined a new optimum. Classic calculation methods needed hours or even days for equivalent results, depending on the complexity. This is neither economically viable nor practical in day-to-day business, so companies have often had to make do with simpler methods and poorer results.
The introduction of artificial intelligence in scheduling management is a new milestone for high delivery capability with reduced inventories
Even automated scheduling management systems such as DISKOVER SCO can be further optimized with AI. The benefits are even clearer for companies that have not yet been optimized with an APS system such as DISKOVER. As a rule, significantly better results are achieved here with less planning effort and at lower costs, so that the Service Level Booster really pays off for any company with a finished goods warehouse of around 500 products or more. The more complex the range and the larger the warehouse, the greater the benefit.
The service level booster generally adjusts finished goods inventories in industrial and retail companies so that minimum stocks are maintained for a given overall delivery readiness level. Alternatively, the new Service Level Booster can also achieve maximum delivery readiness for a given inventory value.
High delivery capacity with reduced inventories is key to the competitiveness of trading companies and stock manufacturers
“Higher delivery capacity is usually bought with disproportionately higher inventories, which ties up liquidity and entails the risk of being stuck with unsaleable stock. Supply chain management and sales try to avoid this dilemma by aiming for different levels of readiness to deliver for different areas of the product range. Up to now, this has mostly been based on gut feeling and experience, as it is practically impossible to achieve an economical distribution of delivery readiness and stock across the entire product portfolio using traditional mathematics. Our new Service Level Booster aims to solve this problem in 90 seconds”
Dr. Bernd Reineke
Free of charge as a service package for DISKOVER customers
The new Service Level Booster can now be ordered as a service package for a one-off potential test, a one-off optimization of all security assets or as a continuous on-premises service can be provided.
The launch of a cloud-based web service is planned for 2022. The Service Level Booster is also available free of charge to all users of the APS and ERP optimization system DISKOVER SCO and is now available in all customer systems. The Service Level Booster is based on the DISKOVER optimizer engine, which SCT has been driving forward with massive development efforts in recent years and which is also used in SCT’s AI-based PP/DS system, which was presented for the first time in 2020.
Further information on the Service Level Booster can be found at this link(https://abelskemmner.docsend.com/view/jf3zq9x9fp57psyc)
