SAF OptimalDeliveryCycle for Cost Optimized Delivery Rhythms and Delivery Modes

Frequent deliveries provide more flexibility to stores however they are usually accompanied by higher costs. Although limiting deliveries to once or twice a week sounds like a simple solution, it is one that should be approached with care. After all, it may result in substantially higher inventories and fluctuating logistics expenditure – which also burdens the cost calculation.

SAF OptimalDeliveryCycle resolves these issues. Based on data from the previous year, SAF experts calculate orders per item and, as a result, the inventory development per day. Process and handling costs, as well as interest, theft and loss expenditures are added. Utilizing this information, SAF OptimalDeliveryCycle simulates alternative delivery cycles and compares their respective costs. The customer is subsequently in a position to choose the most cost effective solution taking into account any existing restrictions.

Benefits:

Analysis of total costs for differing delivery cycles
Provision of a planning basis for logistics concepts, transports and warehouse capacities
Compilation of arguments to be used as a basis for price negotiations with suppliers and manufacturers
Attainment of cost optimized delivery cycles

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The SAF Simulation, Analysis and Forecasting AG is specialized upon development and sales of standard software for automatic ordering and forecasting for retail, logistics and industry. The SAF philosophy is based upon the demand chain management approach which conceives the customer as the key driver of the value chain. The solutions of SAF make room for significant cost savings. Not only does SAF improve the accuracy of sales and inventory forecasts but also optimizes the logistical framework. This results in lower inventory levels, improved product availability and equally important, greater customer satisfaction. Finally, the SAF products help to develop key competitive advantages throughout the value-added chain.

The SAF software solutions include products for automatic ordering, forecasting systems, CPFR concepts, vendor managed inventory as well as analytic tools to optimize the logistical framework.

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