Meet Sage Inventory Advisor in the Cloud

Sage recently announced the general availability of Sage Inventory Advisor, a new cloud forecasting and planning solution that integrates with Sage enterprise resource planning (ERP) systems to provide companies with a daily diagnostic of inventory, reduce time spent on forecasts, and resolve the optimal investment required to achieve target fill rates. As a cloud-based subscription service, Sage Inventory Advisor should be fast to implement and accessible via a Web browser and on mobile devices.

To help inform product design, Sage recently surveyed its customers to understand the magnitude of the problem of inventory. The vendor found that stock-outs, excess inventory, and time and effort to calculate reorder quantities were the highest concerns for its customers, since the cost of inventory impacts the bottom line dramatically. Knowing that inventory is one of the largest business expenses, Sage designed Sage Inventory Advisor to give businesses more insight and control, enabling them to leverage their own internal data to make better business decisions.

Sage Inventory Advisor in Action
Designed for mid-market companies engaged in any type of inventory management, such as wholesale distribution, manufacturing, and retail trade, Sage Inventory Advisor integrates with several Sage ERP systems and analyzes inventory data to identify where the biggest improvements can be made, produce quality forecasts, and quickly suggest optimal replenishment recommendations. Sage Inventory Advisor uses algorithms in the following areas:

  • Forecasting: uses the Forecast Pro algorithms, with the “tournament” method to automatically pick the best-fitting algorithm

  • Safety stock: uses five inputs (service level, lead time, replenishment cycle, forecast risk, and supply risk) to determine the appropriate amount of buffer stock to keep for each and every stock-keeping unit (SKU)

  • Dashboard and key performance indicator (KPI) measurements: keep track of stock and fill rates as well as those items that require attention (such as items in stock-out, potential stock-out, excess and surplus purchase orders)

  • Classification: the classification matrix determines items' importance based on sales/forecast contribution in both value and quantity

  • Ordering: uses the standard order calculation of comparing current stocking positions to the minimum and maximum levels calculated on a daily basis

  • Lead time and supplier measurements: the solution downloads up to 12 months of historical and close purchase orders to calculate and measure lead times as well as supplier delivery performance quantities

Sage Inventory Advisor provides "what if" simulation in an intuitive, graphical user interface that makes analysis and forecasting faster and easier. The product is currently available for those businesses running Sage 100 ERP, Sage 300 ERP, Sage 500 ERP, and Sage ERP X3.
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