For each article the correct predictive methodology and stock strategy needs to be applied, therefore it is important that articles are classified based on their historical demand pattern. Slim4 automatically detects and classifies articles with a normal, slow, regular or irregular demand pattern, whilst also basing classifications on the demand size per time interval and demand size per customer order. The combination of these classifications provides the best prediction methodology associated with each article. An article with high demand, which is aggregated for a variety of customer orders, must be predicted differently compared to the articles which only have a few customers purchasing larger orders.
Furthermore the classification of a product also impacts the associated inventory strategy. An article which a customer buys in batches of ten, needs a different inventory strategy than an article which is purchased one at a time. The optimal forecasting methodology, combined with the appropriate inventory calculations results in the desired service being experienced.
The product classification, and subsequent automatic selection of the optimal forecasting and inventory method, is revised continuously and updated with the latest demand history. Slim4 automatically adjusts the classification and consequently notifies the user should a change occur. The stock planners are responsible for allocating their time and attention to such changes and phasing out the articles when required.
Effective inventory management starts with the correct product portfolio. Which articles should be ranged is not only determined by the business strategy, but also by the individual performance of the articles. Silm4 provides the necessary information and therefore guidance when it comes to deciding which, and in what quantities, articles should be stocked in which location.
The 'best sellers' and 'the flops' in the range must be proactively controlled, especially where the phasing-in and phasing-out of articles is properly regulated. At both strategic and tactical levels, Slim4 provides the necessary information for effective range management allowing for decisions to be made such as whether an item should be stocked, or whether it should be ordered as a 'special'.