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Assortment

Assortment optimization by 4flow consulting reduces supply chain costs, solves inventory issues, and increases service levels.

Optimized aftersales services open up opportunities for a substantial amount of revenue for businesses. A product assortment that is aligned with demand is a key factor for good customer service.

When distributing products in multi-level distribution networks, there is a trade-off between low inventories and short lead times. Therefore, the decision of whether a specific product should be stored at a regional warehouse or a central warehouse should be reviewed constantly.

Many organizations lack processes to monitor and continuously adapt the assortment structure. This results in unnecessarily high costs and missed opportunities for profit.

Benefits of assortment 

Keeping the delivery promise by distributing the product assortment across the aftersales network is the objective of optimization by 4flow consulting. With assortment projects, 4flow is able to increase service levels while reducing inventory throughout the network at the same time. Additional results include:

  • Reduced process costs through optimized replenishment management
  • Lower transportation costs through regional assortments
  • Increase in delivery reliability

Solutions from 4flow

The spare parts business is highly sophisticated and requires industry-specific solutions. 4flow has the necessary expertise and takes an end-to-end approach. Among other things, this requires taking customer-specific service level requirements into consideration.

A 4flow assortment project begins with documenting the current situation and analyzing the existing method of classifying assortments. The key data when evaluating and optimizing assortment parameters include:

  • Customer requirements
  • Demand and consumption data
  • Supplier information
  • Transportation and shipping data
  • Location and site data
  • Material master data

After data is collected and analyzed, various strategies are evaluated based on inventory, costs, and service level in different scenarios. This way, new assortment criteria and parameters can be developed.

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