How to Optimise Inventory with SAP S/4 HANA

Inventory optimisation is the process of optimising inventory levels to ensure that inventory is always available when needed while minimising inventory holding costs. The goal of inventory optimisation is to strike a balance between inventory availability and inventory costs.

SAP S/4 HANA offers several features and functionalities to support inventory optimisation.

Some of the key features of Inventory Optimisation in SAP S/4HANA

• Demand forecasting: This uses historical sales data and demand forecasts to predict future demand. This information is used to determine the optimal inventory levels needed to meet customer demand while minimising inventory holding costs.
  
  
• Reorder point planning: Reorder point planning ensures that inventory is replenished when inventory levels fall below a predetermined threshold. This helps to ensure that inventory is always available when needed while minimising inventory holding costs.
  
  
• Material requirements planning (MRP): MRP uses information from sales orders, production orders, and inventory levels to determine when to replenish inventory. The system generates planned orders and purchase requisitions to ensure that the right materials are available at the right time.
  
  
• Safety stock planning: Safety stock planning ensures that inventory levels are maintained at a level that provides a buffer against unexpected changes in demand or supply chain disruptions.
  
  
• Inventory turnover analysis: Providing inventory turnover analysis reports that allow organisations to analyse inventory turnover rates and identify slow-moving inventory. This information can be used to optimise inventory levels and reduce inventory holding costs.
  
  
  

  What benefits does Inventory Optimization in S/4HANA provide to your organisation?

• Improved customer service: By ensuring that inventory is always available when needed, inventory optimisation helps to improve customer satisfaction and reduce the risk of lost sales.
  
  
• Reduced inventory holding costs: By optimising inventory levels, organisations can reduce inventory holding costs, freeing up capital for other business needs.
  
  
• Increased efficiency: By automating inventory management processes, inventory optimisation helps to reduce manual tasks, improve accuracy, and streamline inventory management processes.
  
  
• Better decision-making: Inventory optimisation provides real-time inventory data that can be used to make informed decisions about inventory levels and orders. This helps organisations to make better decisions that can improve business outcomes.

With the help of FusionGraph it's easy to discover and understand new functionality like this and add it to your business case for S/4HANA migration. 

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