4flow turn is the standard software solution developed by 4flow AG for optimizing inventory levels based on total costs.

In 2010 4flow turn was awarded with the elogistics award. In 2009, 4flow turn was named to the prestigious Supply & Demand Chain Executive 100. The top 100 Supply & Demand Chain solution providers are honored annually in the U.S. In 2007 4flow turn was awarded the "Prize for Innovation 2007 ITK" of the "Initiative Mittelstand" (initiative for medium-sized businesses) as innovative product in the category of logistics.

Many companies face an increasingly dynamic environment: customer-specific products, changing order quantities and new product introductions, to name but a few of the major driving forces. It is not uncommon that materials managers carry responsibility for several hundreds or even up to a thousand articles.

In this situation it occurs that parameters that determine the inventory levels and delivery frequencies cannot be updated on a regular basis. This very situation requires the introduction of a new, tool-driven process – the Dynamic Inventory Optimization.

Based on an approach that applies multi-dimensional clustering, 4flow turn is capable to automatically determine the required parameters. It simultaneously takes into account sales data, supplier ratings as well as transportation costs. As a result a sustainable inventory reduction of approximately 40% can be observed. Furthermore, an even stronger effect on total costs and an increased service level can be realized as well.

4flow turn is a web-based and platform-independent software and can be implemented in any company where inventory levels and inbound delivery frequencies are supported by an ERP system using parameters.

The most important features of 4flow turn are:

• Optimization of costs and service levels based on appropriate constraints such as storage space, limited capacity at receiving areas etc.
• Automatic parameter definition for each article based on multi-dimensional clustering while considering relevant factors such as sales data, supplier ratings and transportation costs
• Sustainable results by using the inventory and delivery control functionality
• Easy integration into the existing ERP-landscape via standardized interfaces

The main benefit of 4flow turn is its capability to reduce costs while simultaneously increasing service levels. This result originates from the embedded inventory and delivery frequency matrix. The specific savings depend on the respective starting conditions and usually result in:

• inventory level reduction of up to 40%
• reduced obsolete inventory as well as lower inventory depreciation by applying 4flow turn to the slow-mover management
• reduced total costs (inventory and transportation costs) of up to 15%
• increased service levels and thus reduced shortage costs by determining inventory levels for critical parts
• reduced activity-based costs of around 10-20% due to standardization and IT-based workflows

For further information please read the White Paper 4flow turn®.

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