Understanding Inventory Optimization in SAP IBP

Most companies don't have an inventory problem. They have a planning problem. ????

Some Key steps to set up Inventory Optimization in SAP IBP:

1. Refine master data — lead times, lot sizes
2. Assess demand variability — calculate uncertainty
3. Algorithm-driven optimization — safety, cycle & pipeline stock
4. Set inventory targets — optimal levels by location
5. Simulate with What-IF scenarios
6. Deploy targeted plans — drive procurement decisions

Objective: Lower costs. Higher service levels. Less risk. More agility.

With the new Ai features SAP is planning to launch, the IO tool and process will be much nimbler.  Ai can be enabled to make decisions based on thresholds to resolve some exceptions with the result to flag only high impact exceptions for planner interventions.   

We at Valtitude are looking forward to the enhanced features in IO that can be rolled out to all our SAP clients.  

Lower costs, higher service levels, less risk — that's what algorithm-driven IO delivers when set up right. Explore our Inventory Optimization services or contact us for an assessment.