Autonomous Procurement & Inventory (AP&I)

SCAS’ Autonomous Procurement & Inventory (AP&I) main objective is optimizing profitability and minimizing supply chain inefficiencies. The complexities of modern supply chains and the challenge of driving procurement, production, and inventory management workflows by forecasted consumer needs is beyond human capacity. When AP&I is applied, it has demonstrated the ability to achieve the following improvements:

  • Overstock: 4%+ reduction of the Average Annual Inventory value
  • Stockouts: 1%+ reduction of the Average Annual Inventory value
  • Supply expirations: 50%-80% reduction (whenever applicable)
  • Overall order flow: 5%+ reduction of the Annual Freight Spend

AP&I Reinforcement Learning Engine Continuously Driving Inventory Automation Based on a Cross-Supply-Chain Visibility.


AP&I Overview

1) Target Inventory Levels (TIL): AP&I autonomously sets optimized Target Inventory Level (TIL) and Safety Stocks (SS) values for each SKU across each point of storage along the supply chain including distribution centers, storage warehouses, retailer distribution centers (whenever applicable) & retail outlets (when applicable).

2) Replenishment Orders: quantities/timing to replenish each item/SKU in each warehouse or distribution center (typically ordering from suppliers)

3) Cross-warehouse movements: per-item quantities to move between the different warehouses across the supply chain (together with the timing of each transaction)

Leveraging the power of AI in forecasting consumer supply needs, AP&I determines the target inventory level of each supply item at each of the warehouses on an on-going basis to maximize each warehouse’s ability to meet the forecasted demands of its regularly served customers. AP&I allows our target customers to minimize supply chain inefficiencies and waste resulting from expired supply items, overstocking, stockouts, and cross-warehouse movement of supply items.