Oracle Advanced Inventory Planning (AIP)

As I promised last year, this year we’ll write about differences solutions that we have within the RPAS. Among the solutions we’re going to talk during this year, one is Advanced Inventory Planning (AIP).

O Advanced Inventory Planning (AIP) is one of the most powerful and complex application that exist within the RPAS solutions. This solution has designed to support major retailers, with need to control a large number of products and inventory information .

What is supply chain need?

In recent years, many retailers changed their way to sell your products, specially because they needed to meet the most diverse clients; therewith, there were big change in the strategies and organization of the supply chain for each retailers, indifferent if they are small or big.

If in the past, most retailers had a big national distribution center (DC); where these DCs had all products and they send to the all shops of company.

Nowadays, many companies has changed how they sell your product, Many retailers needed to recreate or improving logistics to be faster to delivery and support many sale channels.

Because that, many companies have chosen to have different strategic distribution centers, sometimes with small distribution center near large centers and thus ensure a more effective delivery.

Many companies have created new departments to seeking solutions or apply best strategies to ensure that their products are always present in your shelves.

How AIP supports the Supply Chain?

The AIP has designed to meet the inventory and replenishment management needs, without acting on the logistics rules. It’s responsible to understand the supply chain structures to suggest order or transfer (when and how much) should be delivery to a particular point in the supply chain.

The AIP goals defined by Oracle is “Create achievable replenishment plans and inventory position at the Right Place at the Right Time”. What is it means? In a simple translation is “The right product, in the right quantity and at the right place, without waste”

For this happen, the AIP is organized to manage the following points:

  • Supply Chain Information: sources, lead times, capacity, delivery dates, etc.
  • Product inventory information: pack sizes, inventories, product life, etc.
  • Plan order of shops and warehouses: purchase order, transfers, etc.

Benefits of using the AIP

When using the AIP, the retailer there are many benefits, especially for those with large volume of products and large replenishment process.

To retailers with complex supply chain structure, they can manage in different merchandise level and thus guarantee replenishment for all products.

Also it’s very common to see retailers grow up the product number in stores keep the same store/warehouse inventory level.

Oracle highlights other benefits:

  • Fulfill customer demand profitably with lowered inventory levels
  • Enhance business users’ productivity and decision-making
  • Improve inventory management and replenishment order processes and metrics
  • Enhance vendor relationships
  • Improve resource utilization distribution

Let’s understand more about how AIP is organize in Oracle Advanced Inventory Planning (AIP) – Structures

More details you can find in Oracle

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