Monday, July 18, 2011

Taming the Supply Chain

In a recent IBM Systems Magazine article, Jim Utsler describes how IBM reduced its microelectronics inventory, but elevated service levels. 

In today’s uncertain economic times, companies of all sorts are keeping a close eye on inventory levels.  They must avoid having too much stock during lean times and not having enough should orders suddenly arrive. 

Mastering this delicate balance is the key to increased revenue and reduced operational expenses.  According to article, IBM Research developed Advance Cross-Inventory Optimizer (AXIO), formally known as Dynamic Inventory Optimization Solution (DIOS) to address this balancing act.    The Q&A article goes into some detail about how and why this method of calculation is better than those of the past.  Apparently this is true, because they were able to reduce inventory 10 times while achieving service levels above 95 percent.

The take-away is that the methods used today may be more sophisticated, but the need is still the same.  Ever since manufacturer’s existed the need for better and better inventory management has driven the need for new systems. 

In today’s world Enterprise Resource Planning (ERP) systems are customized for specific industry segments.  The ability to link industry needs with the right solutions is where many consultants transition from Salesrep to Trusted Advisor.  The array of choices today is too vast to navigate alone.  Dolvin works with your team to define and deliver the right solution to your challenges.

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