Modern companies encounter the following problems:

  • 1

    Unbalanced assortment: fast-moving and high-demanded goods often drop out while non-sellers overload warehouses and shelves.

  • 2

    Lost sales appear. Level of stock availability is on average 80 %.

  • 3

    High overstock level freezes operating assets. Non-seller goods are written off to losses or sold out at low prices.

  • 4

    Managers are constantly complaining on high out-of-stock level though at the same time the warehouse rapidly increases in space and personnel.

  • 5

    Stock spoilage increase (regrading, short-deliveries).

  • 6

    Additional expenses on goods movement between storage points to execute urgent deliveries.

How to improve the situation and provide a profitable business?

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Commodities, raw materials, finished and intermediate goods – in terms of business are all referred to as STOCKS, which in fact are financial investments we expect returns from. Effective inventory management allows to maximize return on investments.

There are different inventory management models. Theory of Constraints as a progressive business management methodology offers its own inventory management tool called Dynamic buffer management (DBM). DBM allows to provide high product availability level while keeping the stocks in the system at a minimum level.

To manage manufacturing inventories effectively, we offer a unique methodology — DDMRP (Demand Driven Material Requirements Planning). This methodology allows to keep the necessary amount of stock basing on the actual demand.

Using world-class technologies, you can monitor and track every inventory item (SKU) at any supply chain point (in central and regional warehouses), improving and accelerating replenishment processes. This ensures you keep only required amount of stocks to provide the efficient use of the most important resource — cash.

Learn about inventory management in your industry

What we offer

  • Diagnostics

    Running diagnostics and revealing “bottlenecks” in inventory and assortment management

  • Training

    Holding a seminar training on Theory of Constraints methodology for key employees of the company

  • Optimization

    Creating the system of dynamic buffer management, which will take into account the actual demand and sales

  • Automation

    Automating inventory and order management with cloud-based software solution

  • Maintenance

    Providing methodological support and technical follow-up

ABM Inventory is designed to calculate automatically the required stock level for each SKU at each stock location in accordance with actual demand fluctuations. Inventory management algorithm is based on the Dynamic Buffer Management (DBM) method. Read more about ABM Inventory features here.

Benefits your company can obtain

  • Continuous goods availability with minimum level of stocks.
  • Lost sales reduction by 30-60%.
  • Out-of-stock level reduction by 35-60%. Capital turnover acceleration
  • Increase in procurement personnel efficiency
  • Reduction of company’s capital share that is invested in goods in stock with simultaneous sales increase.
  • The system, which allows to evaluate the profitability or unprofitability of commodity groups, SKU, warehouses, major customers, retail outlets and also supplier reliability, order execution accuracy etc.
  • Inventory dynamic management system, which contains mechanisms for calculating stock movement efficiency, supply orders, stock replenishment and tools to respond to seasonal demand fluctuations.