The
DLT Inventory Analyzer identifies future inventory levels that may lead to
write-offs and opportunities within the supply chain network to minimize them. It is
particularly appropriate for products with limited shipping and shelf lives
distributed through a network of Distribution Centers or large retail outlets. Such
products include foods, pharmaceuticals, appliances, personal computers, cell phones,
and even vehicles among others. There is a desire to deliver these to customers while
several weeks (or months) remain before the shelf life expiry date. The “shelf life”
is related to product degradation in the case of foods and pharmaceuticals and
obsolescence resulting from new model introduction in the case of commodities such as
computers, cell phones, and vehicles.
Using current inventory and the latest demand forecast,
DLT Inventory Analyzer projects
quantities that cannot be delivered with sufficient “shelf life” remaining. It also finds
opportunities to resolve the problem by re-deploying product to other DC’s with sufficient
demand to minimize potential write-offs. The re-deployment strategy also minimizes
transportation and handling costs.
Understanding potential inventory issues early has many benefits. Product with insufficient
“shelf life” is usually sold at steep discounts or scrapped with a resulting negative
impact upon profitability. Timely redeployment can also lead to improvements in customer
service levels.