The challenges to optimizing inventory are many. Demand changes across the country — even from one end of a city to another. Are you optimizing local assortments to minimize costs while avoiding lost sales? How do you know which SKUs, and how many, will be needed at each store location and distribution center? Aftermarket Analytics’ optimization technology can help you deploy the right inventory assortment to maximize revenue and minimize costs. Our robust algorithms analyze:

Sales Forecast
A solid SKU-level sales forecast by store is the basis of your inventory strategy.

Estimated Forecast Error
We know that no sales forecast can perfectly predict the mutability of consumer behavior. We compare your sales history with forecasts to estimate the likelihood of error.

Target Service Level
You want to be sure that highly-profitably, fast-moving parts are on the shelf whenever a customer walks through the door. Conversely, it may not be as important for certain slow-moving or low-profit parts to be on hand at all times. We give you the capability to manipulate target service levels to fit your strategy.

Replenishment Lead Time
Time is money, so we factor in the time it takes from ordering a part to the moment it arrives on your shelves.

Order Frequency
Whether your stores and distribution centers place orders weekly, daily, or continuously, we consider the impact on your bottom line.

Holding Cost
To avoid margin compression caused by slow-moving parts, we account for the cost of holding an item in inventory.

After collaborating with you and your channel partners to determine these important inputs, we generate customized inventory recommendations for your stores. Our optimization process balances sales revenue and inventory costs to ensure that your working capital is working for you.

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