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Products
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PRODUCT FLOW OPTIMIZATION
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Speed and flexibility of product flow is critical to the Retail industry, it provides both a service and cost advantage...
Read more 
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Limited Brands
David Kaduke
Director
Logistics Planning
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Distribution and Stocking Solution
Product Flow Optimization (PFO) is a powerful and easy to use strategic stocking and distribution strategy solution that allows businesses to analyze tradeoffs between transportation, warehousing, inventory carrying costs and service requirements to arrive at the optimal product delivery path to customers, allowing companies to improve profitability and meet customer requirements.
Solutions can be viewed, compared and easily exported to tables and graphs for presentations and further analysis. The Product Flow Optimization module considers the following business issues:
Key Business Issues
- Improve Customer Service
Optimize the balance between shipping & warehousing costs and service level requirements to improve product delivery times. The ability to respond to customer pressures and competitive threats is key to revenue growth.
- Improve upon traditional make to stock processes:
SCA PFO determines stocking strategies for different SKU’s that can represent significant cost savings for the supply chain by correctly identifying which SKU’s should be held in Central DC’s, which in Regional DC’s, which in both, and which should not be stocked at all.
- Optimize product distribution based on regional customer demand:
SCA PFO determines the correct distribution flow for each SKU and customer region, allowing companies to realize significant supply chain savings.
- Reduce Distribution Costs:
SCA PFO determines the best distribution strategy for each SKU for each customer region to minimize total costs- sourcing, transportation, receiving, and inventory costs.
- Optimize inventory levels to meet customer requirements:
SCA PFO helps companies determine the levels of inventory needed to maintain customer service goals based on stocking and distribution strategies. What-if analysis-capabilities allow firms to visualize how optimal stocking and distribution strategies change as customer service changes.
- Total Inventory Strategy:
SCA PFO integrates with the other powerful modules within Supply Chain Analyst (Inventory Analyst, Supply Planner, Demand Profiler) to allow you complete all of your inventory optimization projects within the same easy-to-use framework.
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