How does modern inventory management software differ from other supply chain software?
Inventory management software typically includes forecasting and replenishment modules. Forecasting helps you balance target inventories and incoming supplies with expected demand. Replenishment helps determine the safety stocks that are needed at points along the distribution chain to satisfy orders at a given fill rate. A subset known as inventory optimization software employs complex algorithms to recommend the best locations and quantities for meeting demand across the entire supply chain. “The benefit is a significant reduction of inventory without having to do a lot of structural change,” said Nari Viswanathan, an Aberdeen Group vice president and principal analyst. Inventory management software is available standalone or in ERP and supply chain management (SCM) suites.
