Soft4Inventory, accounting and stock management software, uses the well-recognized TOC (“Theory of Constraints”) dynamic buffer technology, together with the LEAN pull replenishment approach, in order to optimise your inventory levels efficiently. Built on, and integrated within Microsoft Dynamics NAV, it allows for an increase to 95% in average in the customer service level you want to (or must) achieve, and up to an average 40% decrease in the inventory level during the first year following Soft4Inventory implementation, according to our customers’ experience.
Using Soft4Inventory, you can affect the bottom line because:
- Service level increases (Service level = Actual sales/Possible sales * 100%). Increasing the service level usually leads to an increase in actual sales and profit. As profit increases without additional costs, this additional profit directly adds to the bottom line.
- Overstocked inventory decreases and reduces the accumulation of excess inventory. As a result, working capital, exposition and warehouse spaces are freed up, and inventory turnover ratio increases. Because only the excess inventory level is managed, there is no negative effect on service level or other influence on sales.
- Time required for inventory management operations and decision-making shortens. As a result, inventory management costs decrease. Daily operations require minimum time from highly competent staff; therefore, the employees can work on more valuable tasks such as assortment building, pricing, and customer service.
A company usually achieves all three benefits in different proportions. The ratio depends on the company’s status prior to implementation: loss of sales due to stock shortage; excess inventory leading to frozen capital, extra warehouse space, losses through sell-outs and so on. Using the benefits achieved, the company significantly improves its overall ROI (Return on Investment) indicators.
You can use benefits gained after implementing Soft4Inventory, stock and inventory software, for:
1. Inventory reduction in order to reduce related costs and release capital frozen in stock (Cost Thinking Way).
2. Sales increase by reinvesting released working capital in a new assortment.
3. Sales increase by using released exposition and warehousing space for new items.
4. Business growth or better customer service using time saved from daily routines for inventory management.
Calculate direct Soft4Inventory benefits for your company
As mentioned above, the size of the benefits you might gain largely depends on your company’s present status, the existing inventory management tools, as well as on the inventory management culture and processes in your company.
Calculate the approximate benefits your company might achieve after implementing Soft4Inventory using our web calculator. The calculation is based on the average results achieved by our customers after implementing the Soft4Inventory software solution.
Would you like to check in more detail what benefits YOUR company can achieve through decreased stock level or increased service level? Sign up for our simulation test, which includes your real inventory management data.