Fulfillment/Logistics News
Most Read
Most E-mailed
E-mail Article
Print Article
Cadent Resources Offers Solution to Improve Inventory Turns and Capacity Utilization
DemandCaster solution provides outsourced response management service that couples Web-based analytics with repeatable process of expert analysis and collaboration
Chicago — March 10, 2009 — Inventory and capacity optimization specialist Cadent Resources is highlighting its DemandCaster solution aimed at helping companies address their planning challenges in a cost-effective and minimally intrusive manner.
DemandCaster is an outsourced response management service that couples Web-based analytics with a repeatable process of expert analysis and collaboration to improve inventory turns and capacity utilization for better service and cash flow. The goal is to maximize return on working capital by assuring the right amount of inventory and capacity are available at the right time.
According to Cadent, DemandCaster is not meant to replace the planning engine in an enterprise resource planning (ERP) system. Instead, DemandCaster integrates with an existing ERP system and/or customer planning systems to analyze and forecast demand for the products that are sold to end users.
The solution dynamically performs a "360-degree analysis" of every SKU for the characteristics that drive inventory, the volatility of customer demand and reliability of inventory replenishment, Cadent said. The solution, available now, is targeted at small to mid-market distribution and manufacturing firms.
The five-step process involves extracting data files that are uploaded from a company's operating system to DemandCaster; an initial raw analysis to establish replenishment settings and service levels; further iterations and analysis to identify inventory reduction opportunities and commence free cash flow; periodic follow-up reviews to continually improve the process to keep inventory objectives in line with changing conditions; and when applicable, identification of additional improvement opportunities across the supply chain for further savings.
X-L Engineering Corp. has been using the solution for four months and has brought its stock outs and shortages down from 30-40 percent to just 3 percent, according to Paul L. Prikos, vice president at X-L. "The visibility and ease of tracking jobs has been felt in all areas of the company," Prikos said. "With DemandCaster, we can monitor trends, declines and spikes in demand and address production proactively allowing for higher levels of efficiency."
Another customer, American Metalcraft, has reduced its inventory by 11 percent using the solution, according to the company's controller, Dean Snyder. "Cadent Resources has been the best investment AMC has made in the three years I have been here," Snyder said.
DemandCaster is an outsourced response management service that couples Web-based analytics with a repeatable process of expert analysis and collaboration to improve inventory turns and capacity utilization for better service and cash flow. The goal is to maximize return on working capital by assuring the right amount of inventory and capacity are available at the right time.
According to Cadent, DemandCaster is not meant to replace the planning engine in an enterprise resource planning (ERP) system. Instead, DemandCaster integrates with an existing ERP system and/or customer planning systems to analyze and forecast demand for the products that are sold to end users.
The solution dynamically performs a "360-degree analysis" of every SKU for the characteristics that drive inventory, the volatility of customer demand and reliability of inventory replenishment, Cadent said. The solution, available now, is targeted at small to mid-market distribution and manufacturing firms.
The five-step process involves extracting data files that are uploaded from a company's operating system to DemandCaster; an initial raw analysis to establish replenishment settings and service levels; further iterations and analysis to identify inventory reduction opportunities and commence free cash flow; periodic follow-up reviews to continually improve the process to keep inventory objectives in line with changing conditions; and when applicable, identification of additional improvement opportunities across the supply chain for further savings.
X-L Engineering Corp. has been using the solution for four months and has brought its stock outs and shortages down from 30-40 percent to just 3 percent, according to Paul L. Prikos, vice president at X-L. "The visibility and ease of tracking jobs has been felt in all areas of the company," Prikos said. "With DemandCaster, we can monitor trends, declines and spikes in demand and address production proactively allowing for higher levels of efficiency."
Another customer, American Metalcraft, has reduced its inventory by 11 percent using the solution, according to the company's controller, Dean Snyder. "Cadent Resources has been the best investment AMC has made in the three years I have been here," Snyder said.
RSS Feeds
