Browse Prior Art Database

Retail Store Solutions Inventory and Planning Consumption Tool

IP.com Disclosure Number: IPCOM000160816D
Original Publication Date: 2007-Nov-30
Included in the Prior Art Database: 2007-Nov-30
Document File: 5 page(s) / 75K

Publishing Venue

IBM

Abstract

The Retail Store Solutions Consumption Tool provided a holistic approach to managing the RSS supply chain relative to inventory management, procurement management, planning and the assurance of customer delivery and satisfaction. This invention is an analytical model via an excel based report, where by we look at key supply chain components to help drive improvements to our feature planning accuracy as an output of the supply chain engine. The objective of this reporting tool is to: provide MRP (Material Requirements Planning) demand vs. actual order consumption to our WW Planning Team for future improvements, (b) allow the procurement team to take actions based on historical order consumption data and future order load visibility, and (c) ensure proactive changes are made to the MRP demand cycle resulting in improvements for IBM performance, supplier performance and customer delivery performance. Within this process, we look at key measures, such as (a) previous quarter’s consumption, (b) current quarter consumption, (c) current inventory, (d) open purchase order data and (e) current loaded plan. This helps to provide the feature planning team with a view by the executable p/n, indicating what requirements are being driven based on the MFI planning; This solution is and was required because the variance between the planning and actual consumption of parts were extremely high. The RSS team was not only experience high inventory levels, internally, in addition we were missing customer commitments and saw an influx of inventory supplier liability, which was causing issues in our overall robust nature of our supply chain. Most notably, our supplier relationships were at risk, based on our lack of commitments and poor planning. During this time period, there was no business process, tool or methodology which provided a holistic approach to planning, while looking at all the variables affecting the "to be planning output". However, this solution took a holistic approach by looking at procurement aspects, inventory levels, supplier inventory levels, past planning performance, ship history, backlog history and the current planning mode, thus providing worldwide planners with the ability to enable an increased analytical model planning approach resulting in an improved end to end supply chain improvement and execution flexibility. By utilizing this tool in "one quarter" inventory levels were decreased by $1.2M, mitigated $3M worth of supplier liability and also resulted in supply chain commit process efficiencies (supplier commit by suppliers improved to 98%). The key difference with this solution and existing solutions is this solutions provides a planning methodology based on the key components of the supply chain -- a holistic approach to planning -- it combines the execution to close the overall supply chain loop and feeds it into the planning process for increased performance.

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Retail Store Solutions Inventory and Planning Consumption Tool Retail Store Solutions Inventory and Planning Consumption ToolRetail Store Solutions Inventory and Planning Consumption Tool

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Background :

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The problem and business solution solved by this invention results in the overall improvement of supply chain "parts" planning accuracy and results in an improvement in inventory levels and supplier liability.

Current known solutions to this problem have been driven only to the machine type model level. In many supply chains, the planning and inventory management is often done on the "top level" and the "top level" planning drives the feature planning or parts level planning. However, from a supply chain execution perspective this fails to solve the many business problems of high inventory levels and mis-ships to customers, caused by poor planning accuracy.

This solution is and was required because the variance between the planning and actual consumption of parts were extremely high. The RSS team was not only experience high inventory levels, internally, in addition we were missing customer commitments and saw an influx of inventory supplier liability, which was causing issues in our overall robust nature of our supply chain. Most notably, our supplier relationships were at risk, based on our lack of commitments and poor planning.

During this time period, there was no business process, tool or methodology which provided a holistic approach to planning, while looking at all the variables affecting the "to be planning output". However, this solution took a holistic approach by looking at procurement aspects, inventory levels, supplier inventory levels, past planning performance, ship history, backlog history and the current planning mode, thus providing worldwide planners with the ability to enable an increased analytical model planning approach resulting in an improved end to end supply chain improvement and execution flexibility. By utilizing this tool in "one quarter" inventory levels were decreased by $1.2M, mitigated $3M worth of supplier liability and al...