New Manugistics Product Revolutionises Inventory Planning

Manugistics Group, Inc. (NASDAQ: MANU), a leading global provider of synchronised supply chain management solutions, today unveiled its Inventory Policy Optimization (IPO) solution, a revolutionary new product that makes supply chains more profitable.

With Manugistics IPO, customers now can optimise inventory at different locations within their supply chain to maximise customer service levels while also minimising inventory costs. The IPO solution also allows companies to optimize inventory fill-rates while factoring in budget constraints.

"Determining the right amount of inventory to hold and the right locations in which to hold inventory is a long-standing issue of critical importance in achieving supply chain efficiency," said Manugistics Global Marketing and Solution Management Senior Vice President (SVP) Lori Mitchell-Keller. "As a leader in supply chain management solutions, we continually address growing industry concerns such as the trade-off between inventory costs and performance. Companies using our IPO solution can easily determine how much stock should be held in the central and regional distribution centres in order to achieve optimal inventory balance while providing superior service."

Historically, companies have stocked higher inventory so they can be prepared for the unpredictability of consumer demand. To optimally set inventory levels, it is necessary to synchronise the supply chain and look across the entire network. While holding inventory in centralised locations decreases overall costs, it also reduces customer service because of stock outs, which means lost sales. Conversely, holding more inventory at the point of sale, improves service, but also increases total inventory in the network that leads to mark downs at the end of the season and profit losses.

"IPO is a groundbreaking solution," said Mitchell-Keller. "It helps synchronise our clients' supply chain and deliver optimal inventory balance while taking into account specific budget and cost constraints. IPO is baked into the Manugistics Supply Chain Platform, making it easy for customers to implement and optimise their supply chains to the highest levels possible."