SAP Enterprise Inventory & Service-Level Optimization (formerly SmartOps) Education - Part 1 of 2
In 2013, SAP acquired SmartOps, Inc., a long time SAP solution extension and leader in the field of Inventory Optimization. Prior to that acquisition, SmartOps educational material was available through the SmartOps website. That material has been moved here. At SAP, SmartOps is now called Enterprise and Service Level Optimization (EIS).
Here you will find individual video vignettes on the building blocks of SAP EIS inventory optimization software. At SAP, we are now offering classroom training on EIS, with details found here. These videos serve as single serving size lessons. Click around, watch them in order or browse directly to a topic video. As always, if you have any questions contact your SAP representative or reach us through the education site referred above.
Single Stage Inventory Optimization
SAP Enterprise Inventory and Service Level Optimization (EIS) used to be SmartOps. This brief introduction addresses uncertainty in your supply chain. Uncertain quantities, and timing has an impact on your inventory required to achieve your customer service targets. SAP EIS provides those calculations.
There are several types of variability and uncertainty in your supply chain. There is supply variability and demand variability. To manage demand variability, you can carry more inventory, increase your production or purchasing flexibility, or risk missing your customer service targets. In this video we go through a simple example to demonstrate how modeling that uncertainty can improve the quality of your strategic decisons to achieve your customer service targets.
Cycle and Pipeline stock are deterministic (no uncertainty) and calculations determine the appropriate levels for these purposes of inventory. This session takes a look through how these types of inventory are calculated and what factors are used in the calculations.
Uncertainty exists in supply chains. To handle this uncertainty, supply chains use safety stock. This session covers how traditional safety stock calculations work.
Multi Stage Inventory Optimization
In your supply chain, how do you manage demand to a customer and demand to another internal location from your warehouse?
Multi-stage inventory is one of the supply chain game changers. The safety stock held in an upstream location can impact the amount of safety stock required on a downstream node. This session takes a closer look at why the values of safety stock impact each other and also how SAP EIS (formerly SmartOps) decides the optimal amounts.
Advanced Inventory Optimization Modules
How can you balance your forecasts from Sales and marketing against the cost of holding inventory to maintain customer service and minimize the impact of lost sales on your results? SAP Enterprise Inventory and Service Level Optimization (EIS).
SAP EIS Service Level Optimization (SLO) is designed to determine the right item-location-specific service targets, minimize inventory investment and lost margin while meeting a global service objective, or while setting service level objectives based on the balance between cost-to-serve and cost of lost sales.