In 2017, North American companies carried $443 billion in excess inventory, while at the same time they held too little safety stock, resulting in $355 million in daily sales losses.
This disconnect in today’s Sales & Operations Planning will be amplified since only 36% of best in class and 38% of all other companies were technically ready to handle the implications caused by Brexit and U.S. Trade/Tax policy changes.
A combination of SAP IBP and RightOn can overcome the issues associated with excess inventory, insufficient safety stock, and the uncertainty associated with preparing for potential changes in taxes and trade
RightOn enhances SAP IBP’s capabilities by providing artificial intelligence that simultaneously optimizes safety stock and cycle stock at maximum economic profit. This link reduces variations in inventory levels. Economic profit is better suited for weighing the complex trade-offs associated with investing in inventory and can be applied universally across the functions as a single balanced metric. RightOn’s Artificial Intelligence engine has the flexibility to include factors such as taxes, opportunity cost of capital, tariffs, duties, etc. to prepare for any pending changes.
Artificial Intelligence for Inventory Optimization
Winner of 2016 SAP HANA Innovation Award: Honorable Mention