As part of its "Powerfully Simple" supply chain planning service, ToolsGroup announced its first outsourced service that gives optimized inventory targets to companies, allowing them to manage and respond to changes in demand.
ToolsGroup, a provider of supply chain software, said the goal of this tool is to help companies collect detailed demand data and analyze it so they can go after the best inventory targets for their customers.
The new “Inventory Optimization as an Outsourced Service” allows companies to avoid the costs of implementing an in-house system. Companies can use ToolsGroup’s inventory modeling and optimization engine as needed through a cloud-based portal.
In a statement about the product, the company noted volatile demand is often cited as the top obstacle to achieving supply chain goals, and said its inventory optimization tool can absorb volatility by repositioning inventory across the supply chain.
"Responding to the customer can be achieved with cost overruns, excessive inventory and firefighting, but to respond profitably means understanding the sources of volatility and planning for them appropriately," commented Tim Payne, research director for Gartner Research, in an August 2011 study.