Achieving high service levels on shelf-life constrained SKUs can be a tricky trade-off. OnTarget quantifies the risk of obsolescence on a SKU by SKU, location by location basis. Or go a step further and find the optimum service level, given the specific cost parameters of a SKU (inventory holding, write-offs and lost service).
Whichever approach, with the trade-off clearly communicated, finding the right balance for your business is made easier.
A global client had several critical raw materials with short shelf-lives yet needed to ensure high availability to protect manufacturing operations and maintain service. Including OnTarget’s obsolescence risk enabled the planning team to have fact-based discussions about the risk and cost of write-offs for a given level of availability. What-if analysis also provided insights into the sensitivity of service levels if the obsolescence risk was minimised. Clear decisions were possible, based on the parameters of each SKU.
… users to quantify obsolescence risk and costs in a way that they can be better understood and actively managed by the business.