Now that we have covered the four disciplines for optimal inventory performance, we want to go more into depth about each of these important disciplines. The first one is alignment. This is where you establish your strategic inventory goals and let our system know what goals the system should drive towards. When you first implement Thrive Technologies’ inventory optimization software, the management at your company will set strategic inventory policies that systematically drive tactical inventory replenishment buys.

Once these inventory policies are set based on your company’s inventory goals, Thrive will provide “what if” projections of those inventory policies during implementation of the software. This process then facilitates sustained achievement of your specific inventory goals and ensures buy in at all levels.

For example, say you work at a company that sells building materials, has multiple warehouse locations, and stocks thousands of different SKUs. You have noticed that you are consistently underbuying on several of your most popular SKUs, which has resulted in lost sales and irritated customers.  So you choose to start using Thrive’s inventory optimization software. You would benefit from Thrive’s alignment by setting inventory policies towards increasing service levels and reducing lost sales for these items.  The Thrive system would provide a simulation of what the new inventory levels would be based on these goals so you could get feedback of what your new inventory levels and buys would look like.

Alignment is incredibly important because each company has specific inventory goals and challenges they are trying to overcome.   For example, you may want to increase your inventory turns from 4 to 5 but have not been able to do this on a sustainable basis without increasing your stockouts.  Or to extend the example above of a building supply distributor that wants to better manage lost sales, the Thrive system would start measuring your lost sales so that you could see if you are improving or not.  Everyone is different, so Thrive Technologies has made it easy to set unique achievable goals before you even start using the software, so that you can see the results in simulation.  Then once you use the software live,  you know what the system is going to do with your inventory.  This assures both management and buyer buy-in.

Alignment is a critical discipline and a unique methodology built into Thrive’s inventory optimization software.  It ensures sustainable success on inventory intiatives, provides simulated results to get buy in at all levels of the company, and reduces risk when implementing supply chain changes or policies.  Without alignment, it is very difficult to permanently move the needle on your inventory metrics or to change supply chain strategies.

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