Celonis launches Material Allocation app for inventory control
Celonis, a company specialising in Process Mining technology, has unveiled its new application, Materials Allocation.
The app is a part of the brand's suite of Inventory Management applications that aim to revolutionise business operations by enhancing material availability, minimising operating expenses, and liberating millions in working capital. Especially at a time when businesses are battling unsteady inflation and assorted supply chain troubles, the app could serve as a game-changer, offering an innovative approach to inventory control. This approach relies on intelligent suggestions stimulated by real-time consumption and replenishment routines.
The Material Allocation app broadens businesses' perspective on materials, offering a holistic view of current inventory levels across all locations. By doing so, it helps businesses identify whether they're at risk of stockouts, in a stockout, or in possession of excessive stock. More importantly, the app leverages a mathematical optimisation model to offer users optimal stock transfer suggestions. Such recommendations take into account the business constraints necessary for optimal decision-making. Lastly, the app also summarises the total value potential that can be realised by accepting these recommendations.
Peter Budweiser, Director of Product Management at Celonis, stated, "Traditional inventory management and ERP solutions aren't built to deliver the information and insights material planners need to rebalance inventory effectively. The Material Allocation app provides intelligent stock transfer recommendations based on business objectives and constraints, enabling businesses to build more agile and resilient supply chains."
In today's unpredictable and rapidly evolving market, supply chain objectives are increasingly complex. From managing service levels that are under constant strain from quickly changing consumption patterns and customer expectations, to navigating the unpredictability of supply and demand disruptions, every detail matters. Furthermore, overseeing costs in the face of fluctuating inflation and ever-increasing raw material costs can be exhausting. All these concerns necessitate a fresh strategy for supply chain and inventory management. An approach that equips teams with a live view of material movements and interconnections and offers them intelligent suggestions driven by real-time consumption and replenishment routines.
The Material Allocation app goes further to address an equally pressing issue that many businesses face – inventory imbalances. Outdated planning parameters, organisational silos, faulty forecasts, or the unpredictable nature of current supply and demand scenarios can lead to an excess of inventory in certain locations and a shortage in others. The app integrates inventory, supply, and demand data from across the entire organisation to identify and rectify these imbalances. It proposes a rebalancing of existing inventory to close gaps and optimise a company's working capital. Furthermore, the app's inventory projections capability enables material planners to review the impact of accepting stock transfer recommendations on upcoming demand, ensuring the issuing plant is not placed at risk.
Celonis' new Material Allocation app is now generally available, ushering in a new era of intelligent inventory management. It is one of many tools the company offers that collectively aim to help businesses understand and enhance their inventory health, ensuring companies can navigate the modern business landscape with more agility and resilience.
