Success story
Optimize Inventory Replenishment
Alongside APS
Keep inventory aligned with demand, including replenishment scenarios that standard planning systems cannot fully address.
saved per day
in North America
planning priorities and constraints managed
in understocking and overstocking
of previously manually handled exceptions automated
A Fortune 50 supply chain company needed to maintain optimal inventory levels across multiple warehouses and sites, without compromising product availability or carrying unnecessary stock.
Its planning process used historical sales, demand forecasts and market information to anticipate inventory needs. Some replenishment scenarios, however, fell outside the scope of its APS. These corner cases accounted for up to 20% of planning volume and had to be resolved manually by planners, which was slow and prone to error.
The company integrated Rulex Platform into its existing planning environment, complementing its APS capabilities to automate replenishment scenarios that previously required manual intervention.
From demand forecasts to optimized replenishment plans
Inventory replenishment optimization began with demand forecasting and the calculation of optimal safety stock levels to establish inventory requirements across the network.
Rulex’s vertical optimization solver then determined how to replenish inventory across plants and distribution centers, balancing more than 130 planning priorities and operational constraints. These included minimum and maximum shipment quantities, transportation costs and penalties, as well as stock availability at source locations and quantities required at destinations.
The solution was configured using Rulex Platform’s visual, drag-and-drop environment to reflect the company’s specific operational requirements.
Forecast
Demand and calculate optimal safety stock levels
Optimize
Replenishment while balancing 130+ priorities and constraints
Plan
An optimized replenishment plan for the distribution network
Less manual intervention, better inventory balance
Rulex automated more than 90% of replenishment decisions previously handled manually by planners. This significant reduction in manual intervention delivered:
- 75% reduction in planner workload.
- 8% reduction in both understocking and overstocking across North America.
- $100K saved per day in the region.
Go deeper into supply chain inventory optimization
Inventory performance depends on decisions made well before replenishment: forecast accuracy, safety stock policies and how stock is positioned across the network.
Our article explains how these components work together to reduce stockouts and excess inventory.
Tech point
Take a closer look at the Rulex Platform capabilities behind this inventory optimization solution
01. Flexible replenishment optimization
Rulex’s Distribution Planner is a specialized optimization task for inventory replenishment and material allocation across production sites, distribution centers and final customers. It considers delivery dates, available quantities, transportation costs, capacity and logistics constraints to generate optimized distribution plans. Flexible configuration options allow the solution to reflect specific business priorities and operational requirements.
02. Integration with existing APS systems
Rulex integrates with existing planning systems, using their data to apply additional decision logic and optimization capabilities before feeding the results back into established workflows. This allows companies to extend their APS capabilities without redesigning their planning architecture. Rulex can also support replenishment planning independently when required.
Why Rulex for inventory optimization
Rulex makes routine planning decisions more consistent and scalable. By reducing the time spent resolving recurring exceptions, planners can concentrate their expertise on the cases where human judgment adds the most value.
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Frequently asked questions
What is inventory replenishment optimization?
Inventory replenishment optimization determines when, where and how much stock should be replenished across a supply network. It considers demand forecasts, inventory availability, safety stock requirements and operational constraints to balance product availability with inventory costs.
What is the role of safety stock in inventory optimization?
Safety stock provides a buffer against uncertainty in demand and supply. Setting it appropriately helps protect product availability without adding inventory the business does not need.
Why can inventory planning require optimization beyond an APS?
APS solutions support a broad range of planning processes, but some companies have specific replenishment requirements, priorities or constraints that are difficult to accommodate within their existing system configuration. A decision orchestration layer can combine business rules and optimization to manage these scenarios while keeping the APS and established planning workflows in place.
Does Rulex replace an existing APS?
Rulex does not need to replace an existing APS. It can integrate with existing planning systems, adding decision orchestration and optimization capabilities while preserving established workflows. It can also support specific planning processes independently when required.