Logility Survey Reveals Roadblocks to Freeing Trapped Working Capital
October 31 2019 - 8:30AM
Business Wire
Multi-Echelon Inventory Optimization (MEIO)
Shown to Reduce Inventory Investment up to 30 Percent While
Improving Customer Service Levels
Logility, Inc., accelerating the digital transformation to
automate supply chain optimization and advanced retail planning,
today announced the availability of the report, “Leveraging
Inventory for Profitable Growth.” The research, conducted by
Elastic Solutions and sponsored by Logility, identifies the top
pressures driving inventory optimization (IO) initiatives, the
solutions implemented to support inventory optimization, and how
executives believe they compare with industry peers.
Every supply chain team must balance inventory investments with
service level performance or run the risk of excess inventory and
trapped working capital, or too little inventory and lost sales.
Finding the right balance is critical to boosting service levels
while simultaneously reducing costs. The research found many supply
chain practitioners identify inventory optimization as a top
priority to support company goals and objectives, identify the
cause of excess inventory and help mitigate the impact of demand
volatility. Artificial intelligence (AI)-based solutions like
Logility’s digital supply chain platform, can quickly provide
inventory form and function recommendations across raw materials,
work in process and finished goods.
According to the survey, more than half of the respondents noted
IO is a regular discipline that is part of the sales and operations
planning (S&OP) processes. However, more than 75 percent said
they rely on ERP (enterprise resource planning) solutions to manage
inventory policies. This roadblock highlights a significant
opportunity for companies to further reduce working capital through
the use of more advanced and innovative solutions. For example,
through “what-if” scenario evaluations based on the use of Digital
Twins, Multi-Echelon Inventory Optimization (MEIO) has been shown
to reduce inventory investment between 10 – 30 percent while
improving customer service levels.
Additional Highlights from the Research:
- 37 percent of respondents believe their inventory turns are
better than industry peers
- 54 percent believe they have up upwards of 20 percent excess
inventory in their network
- Nearly half of all respondents review inventory policies on a
monthly cadence
“This research highlights that supply chain executives
understand the tangible benefits inventory optimization brings to
the business yet they struggle to break free of ERP systems and
homegrown solutions to capture game-changing business value,” said
Karin Bursa, executive vice president, Logility. “This leaves
significant working capital trapped within their supply chain
networks. Logility’s MEIO solution employs machine learning to
leverage real-time supply chain and market data to account for the
impact of variability in demand and deliver continual and automatic
updates driving inventory investments.”
Download your complimentary copy of the report, “Leveraging
Inventory for Profitable Growth,” to see how your organization
compares.
About Logility
Accelerating the digital supply chain from product concept to
customer availability, Logility helps companies seize new
opportunities, sense and respond to changing market dynamics and
more profitably manage their complex global businesses. Logility
Voyager Solutions™ leverage an innovative blend of artificial
intelligence (AI) and advanced analytics to automate planning,
accelerate cycle times, increase precision, improve operating
performance, break down business silos and deliver greater
visibility. Logility’s SaaS-based platform transforms sales and
operations planning (S&OP) and integrated business planning
(IBP) processes; demand, inventory and replenishment planning;
global sourcing; quality and compliance management; product life
cycle management; supply and inventory optimization; manufacturing
planning and scheduling; retail merchandise planning, assortment
and allocation. Logility customers include Big Lots, Fender Musical
Instruments, Husqvarna Group, Parker Hannifin, Verizon Wireless,
and VF Corporation. Logility is a wholly owned subsidiary of
American Software, Inc. (NASDAQ:AMSWA). To learn how Logility can
help you make smarter decisions faster, visit www.logility.com.
Forward-Looking Statements
This press release contains forward-looking statements that are
subject to substantial risks and uncertainties. There are a number
of factors that could cause actual results to differ materially
from those anticipated by statements made herein. These factors
include, but are not limited to, continuing U.S. and global
economic uncertainty, the timing and degree of business recovery,
unpredictability and the irregular pattern of future revenues,
dependence on particular market segments or customers, competitive
pressures, delays, product liability and warranty claims and other
risks associated with new product development, undetected software
errors, market acceptance of Logility’s products, technological
complexity, the challenges and risks associated with integration of
acquired product lines, companies and services, as well as a number
of other risk factors that could affect the Company’s future
performance. For further information about risks the Company and
American Software could experience as well as other information,
please refer to American Software, Inc.’s current Form 10-K and
other reports and documents subsequently filed with the Securities
and Exchange Commission. For more information, contact: Vincent C.
Klinges, Chief Financial Officer, American Software, Inc., (404)
264-5477 or fax: (404) 237-8868.
Logility® is a registered trademark and Logility Voyager
Solutions™ is a trademark of Logility, Inc. Other products
mentioned in this document are registered, trademarked or service
marked by their respective owners.
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version on businesswire.com: https://www.businesswire.com/news/home/20191031005432/en/
Justin Siefert Logility jsiefert@logility.com 404.264.5485
www.logility.com/blog
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