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Inventory Optimization

Less stock - more profit

Everyone wants to strike the right balance between working capital, operating costs and the optimal service level. At the same time, it is essential for organisations to invest their time wisely to generate the best returns. DSV operates a fully integrated demand planning, inventory modelling and replenishment planning service on behalf of customers.

Our team of master statisticians, database engineers and supply chain practitioners have deep industry and functional expertise. We create competitive advantage for our customers' supply chains by deploying our unique inventory optimization capabilities, particularly in multi-echelon environments. The primary benefits of our service are:

1. Increased stock turns
An ineffective planning solution can lead to inventory levels being unnecessarily high. By optimising your inventory, the DSV Inventory Optimization service can increase stock rotation by 30% on average, with a corresponding reduction in working capital. DSV will help drive down waste and inventory redundancy across your supply chains.

2. Improved inbound cost efficiency
The DSV principle of order management by exception instead of firefighting, combined with our inventory simulation analysis, cuts your inbound emergency orders by more than half. That represents a 50% reduction in express transport costs and will enable your team to focus on more value adding tasks.

3. Optimised stock availability and higher revenue
Nothing is as bad as losing a customer due to poor service, such as late or incomplete orders. DSV’s approach to inventory management includes determining the optimal service levels per stock keeping unit (SKU). The inventory optimization service typically results in a 25% reduction in ‘Out of Stock’ incidents, which leads to higher sales.

DSV’s Inventory Optimization customers also benefit from the following 4 capabilities of our service portfolio: 

1. Expertise in advanced forecasting and demand planning
2. Transparent reporting on suppliers and sales performance
3. Leading edge planning technology
4. Inventory planning process control that drives results

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