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Win supply chain war with SAS® Inventory Optimisation

Manufacturers, retailers gain competitive advantage forecasting optimal inventory while minimising costs

26 October 2011 - The Premier Business Leadership Series, ORLANDO  – Four-star generals know an effective supply chain helps win wars. Manufacturing and retail CEOs, too, understand that a robust supply chain triumphs in the leaner, competitive marketplace. That's why progressive manufacturers are turning to new SAS Inventory Optimisation, from the leader in business analytics software and services, to augment ERP and supercharge supply chains. 

BEML Ltd. (formerly Bharat Earth Movers Limited) has realized a 15 percent reduction in inventory to date using SAS. BEML manages a vast supply chain network in India, the Middle East, Africa and Brazil with 25 regional depots handling more than 70 products with 210,000 SKUs (stock keeping units). Accurately forecasting spare parts demand to optimise inventory levels was a challenge. The company sought help determining the specific parts required at the right quantity, place and time. 

"To optimise resources and increase profitability, we needed effective and efficient spare parts forecasting – we needed SAS," said Rajeev Srivastva, head of BEML's Technology Division. "SAS helps BEML analyse complicated inventory data and unearth hidden relationships and patterns, which helps minimise expenditures and optimise our inventory." 

SAS Inventory Optimisation enables manufacturers and retailers to calculate ideal inventory replenishment policies even in complex multi-echelon distribution networks. This helps maintain customer service levels while minimising average total costs such as ordering, inventory holding and backorder penalty costs. SAS helps users access all relevant data, regardless of source, then reconcile the data for analysis. 

"It's been said that today's supply chains are like a tube of toothpaste being squeezed at both ends, and I believe that's true," said Lora Cecere, Partner at Altimeter Group and author of the Supply Chain Shaman blog. "The pain is high, and existing supply chain processes are no longer adequate. Optimising the supply chain is more important for manufacturing and retail companies than ever before because of this pressure." 

"ERP and supply chain systems, though great for transactions and operations, never were meant to be analytical platforms," said Mike Newkirk, SAS Global Director of Manufacturing and Supply Chain Product Marketing. "Adding a layer of advanced analytics offers a smarter approach to multilevel inventory optimisation because the mathematical algorithms and statistics at its core replace rule-of-thumb inventory parameters."

Today's announcement came at The Premier Business Leadership Series event in Orlando, FL, a thought-leadership conference presented by SAS that brings together more than 600 senior-level attendees from the public and private sectors to share ideas on critical business issues.

About SAS

SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than 50,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world The Power to Know® .

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