Absolute Value™
Industrial Distribution

Industrial Distribution

Remember the good old days? Distribution companies would stock the warehouse with inventory and then go out and sell what they had on hand to customers. Today's story doesn't resemble that model. Now it is all about increasingly demanding customers, suppliers with a large proliferation of products, pressure on margins, and complex supply chains. Offshore sources create longer, less flexible lead times. Brand extensions and shorter product life cycles increase the number of SKU's and obsolescence risk.


Challenge Absolute Value's Demand Planning Advantage
Long lead times Best fit formula-based forecasting allows for more accurate stocking decisions. It is complemented by the system's net time-phased expected inventory function that provides the most accurate replenishment view across time.
Sporadic and low usage items You can identify a low usage item as sporadic and, under user control for the number of periods that do have usage, automatically develop a target quantity to maintain.
Predicting product life cycle We provide ultimate visibility by defining a forecast trend, and highlighting products so that the user can preview the forecast, in order to avoid purchasing products that would otherwise require a markdown in order to sell them.
Special order and non-stock items When items are flagged as non-stock items, if their quantity goes negative, the system will suggest a purchase as a special order.
Forecasting kits Our solution accommodates kits. When the user forecasts the finished goods, the system will automatically calculate and forecast their components.
Consigned inventory We treat consigned inventory as an additional branch location and automatically suggest transfers to replenish branches based on their defined replenishment path.
Stocking expensive items More expensive items should be purchased at a distribution center level and pushed to warehouses. We provide the visibility to purchase at the DC level and replenish by location as needed.
Surplus and excess inventory We identify inventory need, surplus, and excess across your company on a daily basis and give you the visibility of your entire company when making a buying decision. Multiple warehouse transfers are also taken into consideration.
Multiple forecast levels The forecast can be summarized based on any combination of company, location, item category, product group, etc., and can be represented in quantity, cost, or price. Adjustments made to any of the forecast summary levels can be prorated back as individual adjustments to each item in that level.