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Set inventory policy in line with your business goals

Balance your inventory levels and financial investment with a data-driven inventory policy based on each product’s classification and risk profile. Reduce the impact of disruptions by modeling and measuring the impact of different policy decisions to reduce the risk of overstocking or stock-outs.

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The business leader’s guide to optimizing inventory

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Classify products to increase visibility

Group stocked products according to their sales and velocity and set the replenishment cycle and target fill rate in line with each product’s classification. Gain immediate visibility into each classification’s policy such as stock value, calculated model stock value, average monthly demand, achieved fill rate, and target fill rate.  

Set the right safety stock for stocked items

Safety stock is designed to mitigate supply and demand risk. When the stock level reaches this minimum level, the stock will automatically be replenished to fill the forecasted demand and ensure that the target fill rate is achieved.

Identify obsolete and non-stocked items

Setting the correct stocking indicator is essential to replenishment and determines what data is applied when calculating the recommended order. Non-stocked items are only replenished when a customer places an order and the goal is to hold zero stock. Obsolete items will never be ordered, there can be stock, and it can be sold, however the stock is never replenished.

Refining your inventory policy

Set the inventory policy at a national level or by product or location if you have multiple stocking locations for an item. The policy allows for flexibility, enabling you to create manual policy overrides to a specific policy for an individual product, location, or supplier.

Creating data-driven inventory policy

Your customized dashboard gives you at-a-glance visibility and prescriptive, prioritized recommendations to drive inventory optimization. Netstock enables you to set smart inventory policies that support your business goals, drive rapid and meaningful improvements and realize significant capital savings.

Set target fill rates

Set fill rates by prioritized categories and track performance in real time.

Optimize ordering

Set ordering policies that balance dynamic lead times and supply risk to order the right amount at the right time to hit fill rate targets.

Automate ordering

Netstock automatically generates optimal orders based on your data-driven inventory policy — and seamlessly feeds that order information back into your ERP system.

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