Stop Excess Stock. Start Intelligent Optimization.
PiLog Inventory Optimization provides a data-driven framework to balance operational resilience with financial efficiency. By combining advanced criticality scoring (VED/HML) with automated MRP planning, we transform bloated warehouses into streamlined, high-availability supply chains.
Advanced ABC/FSN/XYZ Analysis * Automated Safety Stock & EOQ Calculation
Real-time Obsolete Stock Detection * ISO 8000 Data Harmonization Native
25-30%
Avg. Inventory Reduction
$4.5M
Typical Annual Savings
98%
Service Level Target
3–5x
Return on Investment
8 Months
Payback Period
THE BUSINESS PROBLEM
Fragmented Designations Are Costing You Millions
Industrial enterprises lose millions to inconsistent equipment identification. Without a unified Reference Designation System (RDS), data handover between engineering, procurement, and maintenance is broken, leading to operational delays and maintenance errors.
HIGH IMPACT
Excess stock ties up working capital and increases insurance, handling, and obsolescence risks.
HIGH IMPACT
Inaccurate criticality rankings mean the wrong parts are in stock, leading to extended production downtime during failures.
HIGH IMPACT
Lack of data-driven Re-Order Points (ROP)leads to emergency spot-buys and high freight premiums.
THE PiLog SOLUTION
Classify. Quantify. Optimize.
The PiLog framework utilizes six-dimensional analysis to ensure every SKU has a scientifically determined stocking strategy
CLASSIFY
Multi-Dimensional Analysis. We apply ABC (Value), FSN (Flow), XYZ (Stock Accumulation), and VED (Criticality) to categorize every material.
QUANTIFY
Criticality Scoring. Our MCA/MCR tool generates a composite score based on production impact, lead time, and safety risk.
OPTIMIZE
Planning Parameters. The system automatically calculates Economic Order Quantity (EOQ), Safety Stock (SS), and Min/Max levels to align with actual deman
The Optimization Methodology
A Balanced Ecosystem in 5 Steps
1
Continuous Governance: Monitor consumption rates and lead times to dynamically adjust levels & prevent obsolescence.
2
Parameter Calculation: Apply statistical formulas to define ROP and Safety Stock based on lead-time variability.
3
Inventory Categorization: Segment stock using HML (Unit Cost) and SDE (Sourcing Ease) to determine procurement strategies.
4
Criticality Assessment: Evaluate materials based on Production Impact, Sourcing Difficulty, and Safety Risks.
5
Data Harmonization: Cleanse and standardize raw data to ensure accurate “Inputs” for the analysis engine
1
2
3
4
5
QUANTIFIED VALUE
OPERATIONAL
Stockout Incidents
-50%
Asset Availability
+15%
Procurement Cycles
-40%
FINANCIAL
Working Capital
+25%
Asset Availability
-30%
Annual Savings
$4.5M
ENGINEERING
Forecasting Accuracy
95%
Lead Time Variability
-20%
Obsolete Stock
-60%
OPTIMIZATION TOOLS & TECHNOLOGY
MCA & MCR TooL
Proprietary engine for ranking material criticality and production impact scores.
| Material | Criticality Score | Impact | MCR Score | ||
|---|---|---|---|---|---|
| Supply | Profit | Production | |||
| 1500111257 | >=18 | 3 (High) | |||
| 1500092819 | 13-18 | 2 (Medium) | |||
| 1500092923 | <=13 | 1 (Low) | |||
Optimization Workbench
Dashboard for simulating “What-If” scenarios on stock levels vs service goals.
Scenario Controls
Service Level Goal
95%
80%
99%
Budget Constraint
2,500,000
$1M
$5M
- Recommended Scenario
Scenario 2
Best balance of service and cost
Automated MRP Engine
Direct integration with ERP to trigger procurement based on calculated ROP/EOQ.
ERP System
Demand & Inventory Data
MRP Engine
Calculate ROP/EOQ & Requirements
Procurement Trigger
Auto-generate PR/PO in ERP
Purchase Order
Sent Supplier
| Material | ROP | EOQ | Stockout | Action | Status |
|---|---|---|---|---|---|
| 1500111257 | 120 | 600 | 12 days | Create PO | Triggered |
| 1500092819 | 80 | 400 | 08 days | Create PO | Triggered |
| 1500092923 | 60 | 300 | 15 days | Create PR | Pending |
Ready to Unlock Your Working Capital?
Join the organizations using PiLog Inventory Optimization to reduce excess stock by 30% while improving service levels
