It is widely accepted that information can be substituted for inventory and the value of good data is well understood. However, improving information alone cannot deliver Inventory Optimisation. A combination of good data, advanced forecasting methods and optimum inventory planning can deliver exceptional results.
Babcock’s Red Cube software delivers significant improvements in inventory savings and performance with very minimal data. The “3D” data of: Demand, Delay and Dollar are the most important factors to assess inventory cost and risk. There is a 4th Dimension, ‘Deviation’ which can be included to quantify fluctuations in demand and lead-times. Red Cube uses this multi-dimensional Pareto analysis of historical inventory demand and supply data to produce a unique insight into the cost-risk profile of all parts and components within an inventory and to recommend a truly optimum solution which maximises inventory performance at all levels of inventory investment.
Our Red Cube software can provide many benefits to our customers including:
- It requires only minimal data: demand, price and lead-time to optimise your investment.
- The recommended optimum inventory solution reports include stock surplus, procurement, demand forecasts and budget projections.
- The results of the 3D or 4D Pareto analysis enables Red Cube to identify the high cost-risk items, helping managers to focus resources appropriately
- The Red Cube trade-off analysis function allows customers to understand the value of any strategy change by calculating the outcome, to guide management strategies and decisions
- The validity and impact of any proposed strategy changes can be tested using the Red Cube software’s Demand Simulation function which generates forecasts of the likely future demand based on past trends.