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Inventory Digital Twin
Developed by Goldratt Research Labs
Identifies How Best To Reduce Avoidable Shortages and Surpluses at Any Stock Location In Your Supply Chain
Our Inventory Digital Twin (IDT) empowers inventory and store managers to identify by how much and how best to reduce avoidable shortages and surpluses. All this is done using our low-cost, risk-free simulation platform that accurately simulate demand and supply within your environment.
please Watch this video first
Inventory Digital Twin
Developed by Goldratt Research Labs
Identifies How Best To Reduce Avoidable Shortages and Surpluses at Any Stock Location In Your Supply Chain
Our Inventory Digital Twin (IDT) empowers inventory and store managers to identify by how much and how best to reduce avoidable shortages and surpluses. All this is done using our low-cost, risk-free simulation platform that accurately simulate demand and supply within your environment.
please Watch this video first
CLIENTS WHO HAVE USED OUR DIGITAL TWINS
Why Leading Organizations Choose Our Digital Twins
The Inventory Digital Twin (IDT) can instantly create an accurate digital twin of your Retail Store or Distribution Center from product demand and supply data, available within your existing IT systems.
With the IDT, you can identify what inventory management rules will create the lowest shortages and surpluses and the highest inventory turns and profitability.
We have designed Our Inventory Digital Twin (IDT) To Help managers Avoid Common Mistakes For The Following Type Of Decisions...
1 - Should we keep inventory and if so, where?
There are two mistakes you can make when making this decision. You decide to keep inventory/ stock when you shouldn’t, OR You decide to NOT keep inventory/ stock when you should.
To avoid these mistakes, this can help with this decision: compare the Supply Lead Time (SLT) to the Customer Tolerance Time (CTT). If the time to supply an item exceeds what your customer can tolerate, keeping stock at that location becomes essential.
Our Inventory Digital Twin (IDT) can help you validate this under real-world conditions, where supply lead times and demand can vary significantly. Further, the IDT can directly compare service levels and profitability between “Make-to-Stock” and “Make-to-Order” strategies. This will ensure you prevent the two mistakes above.
2 - How much inventory should we keep to start with?
Determining the initial inventory amount can lead to two potential mistakes: keeping too much stock, resulting in unnecessary costs, or not having enough stock, leading to lost sales opportunities.
There are a number of rules that can be used to determine how much stock to keep. There is Min-Max, EOQ (Economic Order Quantity), TOC (Theory of Constraints), and DDMRP (Demand-Driven MRP). Each of these comes with its own set of conditions and considerations, making it complicated to know which rule to use.
With our IDT, you can directly compare these rules for YOUR company’s specific customer demand and supply lead time profiles and for every product location to ensure you select the “best” rule for each product location.
2 - How Much Inventory Should We Keep To Start With?
Determining the initial inventory amount can lead to two potential mistakes: keeping too much stock, resulting in unnecessary costs, or not having enough stock, leading to lost sales opportunities.
There are a number of rules that can be used to determine how much stock to keep. There is Min-Max, EOQ (Economic Order Quantity), TOC (Theory of Constraints), and DDMRP (Demand-Driven MRP). Each of these comes with its own set of conditions and considerations, making it complicated to know which rule to use.
With our IDT, you can directly compare these rules for YOUR company’s specific customer demand and supply lead time profiles and for every product location to ensure you select the “best” rule for each product location.
3 - When should we place a replenishment order, and how much should we order?
When it comes to replenishment orders, mistakes often occur in either timing the order—placing it too early or too late, or in determining the quantity—ordering too little or too much.
Each inventory management rule has a unique approach to determining when an order should be placed and how much to order. Factors like Minimum Order Quantity, Capacity Constraints, and Shipment policies further complicate the decision. The challenge lies in figuring out which rule is best suited for your specific scenario.
With our IDT, you can directly compare different order frequencies and order quantity rules with YOUR company’s specific conditions to ensure you use the “best” rule for each product location.
4 - When we are placing the replenishment order to our supplier, what priority should we give to the order?
Prioritizing replenishment orders can sometimes lead to mistakes. You might prioritize an order that isn't urgent, or overlook the urgency of another.
“First-in-First-Out” or Order Due Date or local Buffer status or even the downstream buffer status. It is very difficult to determine which rule is best under real-world conditions and when to make exceptions.
With our IDT, you can directly compare different prioritization rules for YOUR company’s specific conditions to ensure you select the “best” rule for each product location.
4 - When We Are Placing The Replenishment Order To Our Supplier, What Priority Should We Give To The Order?
Prioritizing replenishment orders can sometimes lead to mistakes. You might prioritize an order that isn't urgent, or overlook the urgency of another.
“First-in-First-Out” or Order Due Date or local Buffer status or even the downstream buffer status. It is very difficult to determine which rule is best under real-world conditions and when to make exceptions.
With our IDT, you can directly compare different prioritization rules for YOUR company’s specific conditions to ensure you select the “best” rule for each product location.
5 - When should we change the target stock level, and if we should, by how much?
With so much variability in demand and supply, it can be hard to differentiate between noise and signal. When there's a significant shift in demand or supply, adjusting the target stock levels is critical to avoid unnecessary excess or surplus inventory. But knowing when and by how much you should change the target stock level is a complex problem.
When deciding the new target stock level, you might change it when it's not necessary, OR you don't adjust the target stock levels when they need to be changed.
Our IDT allows you to simulate and test various rules for deciding when and how much to change target stock levels to find the most optimum rule for each product location.
Optimize Your Projects And Overcome Challenges With Confidence
Schedule your free call with us, and learn how our PPDT can help you tackle resource constraints, mitigate unplanned events, and improve your project performance.
6 - When should we stop keeping stock of this item?
Two possible mistakes can be made when deciding when to stop keeping stock of a product: maintaining inventory for too long, thereby tying up cash and wasting precious shelf space, OR discontinuing it prematurely while it's still garnering profitable sales.
Consumer Goods Companies are constantly under pressure to launch new products. Managing the release of new products or new models can be very challenging to get right. And products don't always perform equally well in various stores or regions. How do we know when to replace an existing product with a new product?
With our IDT, you can test various rules for deciding when to replace products to ensure the products you have in stock that occupy space and cash has the highest sales velocity and GMROI (Gross-Margin-ROI).
6 - When Should We Stop Keeping Stock of a Product?
Two possible mistakes can be made when deciding when to stop keeping stock of a product: maintaining inventory for too long, thereby tying up cash and wasting precious shelf space, OR discontinuing it prematurely while it's still garnering profitable sales.
Consumer Goods Companies are constantly under pressure to launch new products. Managing the release of new products or new models can be very challenging to get right. And products don't always perform equally well in various stores or regions. How do we know when to replace an existing product with a new product?
With our IDT, you can test various rules for deciding when to replace products to ensure the products you have in stock that occupy space and cash has the highest sales velocity and GMROI (Gross-Margin-ROI).
Discover how the Inventory Digital Twin can help you and your team
Utilize the Inventory Digital Twin (IDT) to enhance inventory performance, foresee potential stockouts and surpluses, and make data-driven decisions to transform inventory turns and profitability.
The Inventory Digital Twin (IDT)
guides users through 5 simple steps to gain New insights
7 - What Will The Impact Be If Everyone Complied To The Rules?
In reality, people don't always comply with project and execution rules. They may start projects too soon or not adhere to the right priorities.
When projects don't deliver on time or within budget, it's difficult to know whether the cause is suboptimal rules or a lack of compliance with those rules.
Our PPDT can simulate full vs. partial compliance with the rules you've implemented, demonstrating the impact on time and budget commitments. This helps you identify potential issues and adjust your approach accordingly.
8 - How Do We Determine The Most Effective Rules To Implement A Specific Principle?
To achieve optimal project flow, it's crucial to limit work-in-progress (WIP).
Limiting WIP can be done at the project, phase, or task level, and due to VUCCA conditions, it's challenging to determine the ideal WIP limit and when to adjust it in response to changes in project mix or resource availability.
Our PPDT simplifies the process of identifying the most effective WIP control mechanism and WIP limit, as well as determining when and how to adjust these for the best project flow.
STEP 1 - LOAD DATA
Create a digital twin in SECONDS from your inventory data with the IDT
- Our IDT allows users to instantly create a digital twin of a single stock location or a store from the data available from the inventory management system.
- Traditionally, it would take 3 to 6 months to build Digital Twins of single stock locations or a store. The IDT accomplishes this in 3 to 6 seconds!
- You can upload your inventory data using the data template embedded in the IDT, or our team can assist in establishing direct interfaces to your Inventory Management Software to automate the data-uploading process.
Demo From The CEO
Dr. Alan Barnard, CEO & Co-Founder of Goldratt Research Labs does a demo of the Project Portfolio Digital Twin.
STEP 2 - PRE-RUN DATA ANALYSIS
The IDT provides a summary from multiple perspectives of the uploaded data.
Inspect the detailed data to identify areas of improvement. Any incorrect or missing data will be flagged in this step.
- Get comprehensive overviews of your inventory, financial targets, and supply and demand plans.
- Identify potential bottlenecks and areas for improvement before running simulations.
- Analyze SKU data, product performance, and inventory turnover to identify potential bottlenecks.
STEP 3 - SCENARIO SETUP
With the IDT, you can effortlessly generate multiple scenarios to compare different inventory rules, changes to product categories, or the addition of unexpected events.
This allows you to explore different what-if scenarios and identify the best course of action for your inventory management.
- Create scenarios with different inventory rules and see which scenario delivers the best performance.
- Create scenarios with various replenishment frequencies, prioritization, and stock-level options to identify what works best for your store or stock location.
- See the impact of adjusting safety stock levels to understand the actual effect and identify areas for improvement.
STEP 4 - RUN mODEL
Watch the simulation while it's running with dashboards to see the results for both PERFECT World (No Variability) and REAL World (Random Variability In Demand And Supply) Conditions.
- Track key performance indicators, inventory status, and product performance to understand how well your store or stock location is performing.
- Analyze inventory levels, constraints, and variability to identify areas of concern and make proactive adjustments.
- Gain valuable insights from both perfect-world and real-world scenarios, considering variability in demand and supply conditions.
STEP 5 - REVIEW & IMPROVE
The IDT Provides Insights And Recommendations On You Can Optimize Inventory Turnover And Profitability.
- Analyze simulation results to pinpoint opportunities for improving inventory turnover and profitability.
- Benefit from actionable insights and recommendations provided by the IDT to refine your inventory management strategies.
- Iterate on your inventory settings and rules, re-run the simulation, and compare results to enhance performance continually.
Frequently Asked Questions
1. What kind of Return on Investment (ROI) can we expect from using the Inventory Digital Twin?
Our goal is to ensure that every dollar spent with us translates into at least a 10x return on your investment. The ROI from the Inventory Digital Twin (IDT) is realized in multiple ways.
With the IDT, you can identify and eliminate avoidable shortages and surpluses in your inventory. The simulation capabilities of the IDT help you maintain an optimal balance of stock, leading to significant savings in inventory costs, improved sales due to better stock management, and reduced waste.
For example, if you're a small company investing $500 per month in the IDT, our goal is for our Inventory Digital Twin to quantifiably and demonstrably save or generate $5,000 for your organization in that same month. This could be through a combination of lower inventory holding costs, fewer lost sales due to stock-outs, or decreased waste from perishable items.
2. How do I know if I should buy an Individual or Business license?
The individual license option is only for personal use and should only be bought using a personal email address. If you intend to use the IDT within your company, kindly select the Business license
With our annual plan, you get uninterrupted access to the Inventory Digital Twin for an entire year at our best rates.
3. What forms of payment do you accept?
We accept all major credit cards, bank transfers, and payments via PayPal. There are no additional transaction fees for any of the payment methods. We've incorporated these costs into our pricing, so the price you see is the final price you pay, excluding any applicable taxes or duties.
Please note: The prices listed do not include any taxes, VAT, or other applicable charges that might be levied by your local jurisdiction or country. It is the responsibility of the purchaser to be aware of and cover any such additional costs. Depending on where your company is based, there might be taxes and/or VAT applied to the final purchase price.
4. What happens after we buy one of the plans? What's the process?
Once you've purchased one of our plans, you will gain access to the IDT user guide and training material, which wil walk you through downloading the app and activating your license.
In addition to these resources, you also have the option to purchase coaching or additional support calls with a dedicated member of our team:
Coaching Call: One of our team members will guide you through the use of all the aspects of the IDT, and share some useful tips.This session will help you and your team maximize the use of the Inventory Digital Twin
One-on-One Support Session: One of the developers of our Inventory Digital Twin will help you with any difficulties you may have with the IDT.
Should you encounter any critical issues or technical difficulties, our team will be readily available to provide immediate assistance.
5. Are there long-term commitments when buying any of the plans?
Our pricing plans do not require any long-term commitments. Whether you select monthly or annual, you make a one-time payment for the duration of your choice. After your subscription period ends, you have the freedom to reniew your license or not.
6. Is my data secure with the Inventory Digital Twin?
Absolutely. The IDT operates on your computer, meaning all your data stays with you. The only way we will ever access your data is if you share it with us. If you ever need to send us any data, we maintain strict confidentiality, only using it to assist with your IDT operations and never sharing it outside of our company.
7. Can I cancel my subscription at any time?
Because annual plans necessitates a one-time upfront payment, cancellation within the subscription year isn't possible. However, when the subscription year ends, you have the discretion to either renew or discontinue your plan. Rest assured, we don't have automatic renewals; the choice always remains with you.
8. How many licenses do we get when we pay for one of the plans?
Both our Individual and Business plans provide a license for a single user. You can buy additional licenses for how ever many users you require
9. What benefits can we expect from Coaching Calls, or Extra Support?
Coaching Calls: Through this, we not only familiarize your team with the technicalities of the IDT but also educate them on the principles of inventory simulation and best practices in inventory management. This ensures that your team can fully harness the capabilities of the IDT, from analyzing stock patterns to understanding how to prevent avoidable shortages and surpluses.
Tech Support: Our service ensures that your experience with the IDT is smooth and efficient. Whether it's about integrating the IDT with your existing systems or troubleshooting any challenges, our dedicated team is always on standby.
10. How do I become a reseller of the IDT?
If you're interested in becoming a reseller of the Inventory Digital Twin (IDT), we recommend reaching out to us at support@goldrattresearchlabs.com prior to purchasing any license, so we can provide comprehensive information about the process and benefits of becoming a reseller.
Are You Ready To Benefit From Digital Twins As Part Of Your Digital Transformation To Enhance Inventory Management Performance?
Our Inventory Digital Twin has helped numerous organizations optimize their inventory management, reducing stockouts, and minimizing overstock costs. Get Started Today.
Inventory Digital Twin, a product developed by Goldratt Research Labs
All Rights Reserved © 2024
Have a question or want to learn how the Inventory Digital Twin can help your company?
Send Us An Email
marketing@goldrattresearchlabs.com
Have a question or want to learn how the Inventory Digital Twin can help your company?
Send Us An Email
marketing@goldrattresearchlabs.com
Inventory Digital Twin, a product developed by Goldratt Research Labs
All Rights Reserved © 2024