Optimize Inventory, Minimize Costs with Log-hub’s New Inventory Optimization App

3 min read

Up to 15% cost savings and boosted service levels with data-driven inventory management tailored to users’ unique demand patterns.

Log-hub is expanding its portfolio with the new Inventory Optimization App, a powerful tool designed to streamline inventory management while reducing costs. Tailored for businesses looking to maintain an optimal balance between inventory levels and service quality, this app offers a comprehensive solution to inventory challenges.

Who benefits most?

The Inventory Optimization App is beneficial for a range of professionals. Inventory planners can save time and reduce manual effort through automated calculations and valuable insights, allowing them to focus on higher-level tasks. Supply chain managers gain the ability to make strategic decisions backed by data-driven analysis, improving overall efficiency and responsiveness. Business owners will see enhanced profitability by optimizing one of their largest cost centers—inventory—helping to ensure that resources are managed effectively for maximum financial impact.

How the Inventory Optimization App works…

The Inventory Optimization App simplifies inventory management through a user-friendly process. First, users import historical or forecasted demand data directly into Excel. Next, they define service level targets and any constraints, such as Minimum Order Quantities (MOQ) or batch sizes. Users can choose between traditional standard formulas or an advanced AI-powered optimization method to compute optimal inventory policies and parameters. The app generates detailed reports and insights, enabling informed decision-making. Finally, businesses can implement changes based on these insights to enhance their inventory management practices.

For a closer look at this process, check out the embedded demo.

Supporting Multiple Policies

Supporting multiple inventory policies like (s,Q), (s,S), (R,S), and (R,s,S), the app provides flexibility to adapt to various demand patterns and operational constraints. Users can also factor in supplier constraints like Minimum Order Quantities (MOQ) and reorder batch sizes to create tailored inventory strategies.

The app’s ability to simulate both AS-IS and optimized scenarios allows businesses to visualize improvements and make data-driven decisions. Inventory planners and supply chain managers benefit from reduced manual effort and better control over high-impact SKUs, while freeing up resources for more strategic tasks.

Key benefits:

With seamless integration into Excel through Office 365, the Inventory Optimization App fits smoothly into existing workflows, making it an efficient, user-friendly addition to any supply chain toolkit.

Aside from the new app in the Supply Chain Apps portfolio, Log-hub introduces enhancements to the existing apps with the Log-hub 4.4 update release.

Save and combine maps as layers for more efficient and strategic decision-making

Log-hub’s new Map Layers feature simplifies supply chain mapping by allowing users to save and combine maps as layers. Instead of manually recalculating data, users can quickly overlay maps like customer regions and transportation routes for easy analysis.

Additionally, Log-hub has integrated pre-built logistics layers, such as Zip2 regions as well as datasets for warehouse locations worldwide from leading logistics service providers (LSPs) such as DHL, DSV, Dachser, Kuehne+Nagel, DB Schenker, IDS and 50 busiest airports and seaports. This integration bridges the gap between LSPs and manufacturing companies, making it easier to design efficient supply chains. With more datasets to be added in the future, this feature enhances planning, saves time, improves collaboration, and facilitates data sharing across teams for faster, more efficient decision-making. The Map Layer feature is user-friendly, allowing anyone to create and share layers, streamlining collaboration within organizations.

Transport Optimization Plus & Milkrun Optimization Plus

Log-hub’s Supply Chain Apps now include several new features to enhance route planning and cost management in Log-hub’s Transport and Milkrun Optimization Apps. When managing long-haul routes, incorporating driver breaks is crucial for both safety and efficiency. With Relative Breaks, you can strategically plan breaks based on driving hours, allowing planners to prioritize drivers’ well-being without sacrificing timely deliveries. This not only enhances market reputation through reliable delivery schedules but also positions companies as responsible employers that prioritize driver safety. The Cost per Kilometre feature gives fleet managers control over their logistics budgets by tracking the cost of each vehicle based on distance travelled, enabling better cost-effective route planning. Additionally, for Milkrun Optimization Plus users, the Loading Time at Depot Level feature simplifies scheduling by factoring waiting times with loading and unloading times at depots, reducing manual calculations and improving overall planning accuracy.

Balance service level agreements with timely deliveries

The Network Design Plus app now features a service level constraint, facilitating a balance between service level agreements (SLAs) and timely deliveries. This new capability allows you to optimize network design by specifying service levels for warehouses within a defined distance range. By ensuring a substantial portion of products is sourced from closer warehouses, you can improve delivery times while still utilizing further warehouses as needed. This approach effectively meets service level agreements without overwhelming any single warehouse or region.

Long Running APIs for improved productivity when handling large datasets or complex calculations

Long Running APIs for Network Design Plus and Location Planning allow users to run calculations in the background, so they can continue working without interruptions. This is particularly useful for managing extensive supply chain models, as they’ll be notified when results are ready, ensuring smoother workflows and maintaining efficiency.

If you want to try our apps for free, download them directly from Microsoft.