If your warehouse space and working capital of shelf life is a limitation, OnTarget is the tool to manage these constraints. Define any constraint at the SKU/Warehouse level and OnTarget will calculate the consequences, allowing you to make a stock/service/risk trade-off decision.
OnTarget will also highlight if any constraint has been surpassed for a specific SKU.
An international spirits company came to Sequoia with the challenge of improving their inventory management capability, standardising best practice systems and reduce their working capital. Due to complex local legislations the client was missing service targets and incurring fines. Using the constraints feature in OnTarget they could scenario plan for legal compliance and fine minimisation. The result? The ability to identify the safety stock required to support this operating jurisdiction and negotiate with the government over fines.
…planners to use the 'constraints' feature to deliver a modified safety stock target and service level consequences, taking account of physical, financial, or shelf-life limitations for a product.