Small and medium businesses can now compete with industry giants in planning, forecasting, and optimizing inventory, thanks to some very innovative, best-of-breed cloud applications. These newer applications for demand forecasting, supply planning, and inventory optimization are more reliable than ever, and more likely to improve returns well beyond what any transaction-based system is capable of. Best-of-breed planning applications go by many names:
- Retail supply chain software for scenario planning
- Demand planning software for scenario planning
- Demand forecasting software for scenario planning
- Supply chain planning software for scenario planning
- Inventory optimization software for scenario planning
Scenario planning for supply chain and optimization
Applying advanced-analytic algorithms to historical, and other, data enables organizations to assess potential outcomes of important decisions virtually. One way to do this is using Monte Carlo simulation, an IT-enabled statistical method for assessing ranges of potential outcomes, as well as the probabilities of those outcomes. A Monte Carlo simulation, also known as the Monte Carlo Method, lets you virtually test different courses of action to make optimal decisions.
Analytics applications that can optimize inventory and keep your supply chain humming by making educated predictions are available on-demand, or as Software as a Service (SaaS). SaaS is itself an increasingly utilized option because it lets organizations access sophisticated solutions at a lower cost than building, or buying (and maintaining) their own. Additionally, monthly SaaS subscription costs are expensed rather than capitalized, which is a potential tax advantage.
To learn more about scenario planning, reach out to one of our supply chain experts today.