How Maximo Inventory Insights Profiles Inventory
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Maximo Inventory Insights is a Software as a Service offering from IBM that provides predictive inventory optimization. Maximo Inventory Insights profiles inventory and displays the information on a web page in a graphical format. Maximo Inventory Insights cannot do predictive inventory optimization without profiling the data first. What does Maximo Inventory Insights do to profile the data? It takes a few fields of inventory related data from the Maximo database and uploads them to the IBM cloud, where it is run through a configured analytical algorithm. The result is a web page which displays the inventory profile. The inventory profile displays the quality of the data, prioritization options, the value of the inventory, inventory by sites, and a list of the top items that need adjustment.
The quality of data comes up regularly in our electronic world. The inventory profile in Maximo Inventory Insights not only displays which data is valid, but also gives you the opportunity to improve the data quality for the invalid data. In the inventory profile, the quality of data is valued by two measures: whether a lead time exists on items and which items have been issued in the last 12 months. A lead time is critical to the algorithm. Maximo Inventory Insights cannot improve on reorder point optimization if there are no lead times. Therefore, this solution provides the information on how many items have no lead times. The other data measure is inventory movement in the last year. This measure is listed as a percentage of the inventory items that have been issued in the past 12 months.
What's the goal for implementing predictive inventory optimization? Do you want to save money or never run out of stock, or some combination of these two options? Maximo Inventory Insights lets you decide how to optimize the inventory. The software offers a choice between optimizing inventory by cost reduction, by adequate stock levels, or a balance between the two. If cost reduction is prioritized, there is a minimal risk for out-of-stock condition, while maximizing the savings. For example, the offering could show an automobile manufacture to how much money they could save if they stopped buying extra spare parts that no one was using. If adequate stock levels are prioritized there are reduced savings while protecting against out-of-stock conditions. A balance between the two prioritizations seeks to equalize potential savings with adequate stock levels.
The inventory profile in Maximo Inventory Insights also displays the value of the inventory or the carrying cost. This information can be used as a baseline for future scans to see improvements in the reduction of the value of the inventory. The inventory profile in Maximo Inventory Insights also displays the inventory across all sites for items that should be increased or decreased, and includes the total financial impact of optimizing the inventory. The inventory profile can be viewed by the enterprise, by sites, or by storerooms. It costs a lot of money to carry inventory and the inventory profile shows the current value as well as the potential savings with optimization.
The inventory profile in Maximo Inventory Insights also displays the percentage distribution of inventory for the entire organization. The distribution is broken down by enterprise, by site, and by storeroom. This view shows you which sites are carrying and using more inventory than others. For example, this solution can show a global company with sites all over the world information to help them prioritize which sites need the most help right away. The percentage breakdown of inventory distribution by sites is a good way to create the biggest impact in terms of costs savings in inventory optimization.
The inventory profile in Maximo Inventory Insights also displays the top list of items that need adjustment. It displays the top items to increase as well as the top items to decrease. Adjusting these high impact items can have the biggest and quickest cost savings with Maximo Inventory Insights.
In summary, the inventory profile in Maximo Inventory Insights displays the quality of the data, the value of the inventory, prioritization options, inventory by sites, and a list of top items that need adjustment all designed to give a snapshot of the biggest impact to cost savings in inventory optimization.
Key Words: "Predictive Inventory Optimization", "Inventory Analysis", "Inventory Savings", "Inventory Planning"