CINO has been designed as a holistic supply chain optimization tool aimed at unlocking cost savings and improving efficiency that arise from optimizing inventory movement across the entire supply chain. In addition to understanding transportation costs, procurement costs and storage costs, CINO allows for the correct levels of inventory to be layered on top of the network to cover the risk in the supply chain.

Strategy optimization

CINO allows for inventory strategy optimization by:

Optimizing on total supply chain costs including procurement, transportation, warehousing and inventory

Optimizing replenishment policies and safety stock levels

Quantifying the impacts on service and inventory levels of new network designs or supply chain initiatives  

Functionality

CINO derives a cost-optimized forward projection of inventory flow over a defined time horizon. It synchronizes order logic across all locations in the supply chain, leading to a coordinated flow of product, at lowest cost, whilst respecting real world constraints. This approach eliminates the “bull whip effect” often caused by sequential distribution requirements planning (DRP) techniques.

CINO calculates the optimal inventory policy levels for each node in the supply chain. Target service levels defined by the user and forecast error at sales points are translated through the supply chain so that upstream target service levels are supportive.

Policy levels that can be calculated by CINO for each product in every location include:

Optimal replenishment cycles

Optimal safety stock

Demand Management module

CINO includes a fully integrated demand management module that allows sales history, forecast history and forecasts to be easily imported and assigned to stocking locations of choice.

Modelling and reports

CINO determines the optimal sourcing rules and mode of transport for product, based on multi-sourcing and multi-routing options, whilst taking into account user-defined sourcing policies, constraints and costs. Decisions are made on both the cost of risk and the cost of source.

CINO has the capability for Scenario modelling. The user is able to set up, model, compare and save different “as-is” and “what-if” scenarios.

CINO provides an excellent graphical user interface as well as a wide range of customizable reports. It allows for easy manipulation and maintenance of data, and compact management reporting.

CINO and network design

CINO has the ability to import network design results for incorporation into its scenario modelling from CAST and other network modelling tools. Each network model scenario can be tested for the amount of inventory required to support it and the cost of mitigating the inventory related risk elements inherent in any network design.