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Distribution Inventory Stratification Tool

     One of the key success factors in distribution management is to utilize inventory assets effectively while maximizing customer service and profitability. ABC classification analysis is both a network rationalization and an inventory maintenance tool. Inventory should be evaluated by location based on its Gross Margin Return on Investment (GMROI), sales, volume, and movement. Tying profitability to inventory utilization is vitally important.

     Texas A&M's Strat Plus is an inventory management system whereby your company can meet/exceed customer expectations while minimizing inventory through the use of this powerful inventory stratification tool. The tool is developed based on cutting edge research in distribution inventory stratification. The tool helps to understand profitability, product performance, inventory investments and its corresponding ROI. The results analyzer also includes user defined views for detailed and focused analysis. The ABC stratification implementation will greatly increase asset utilization and reduce/consolidate a distributor’s inventory investment.

Key Features & Benefits
  • Cutting edge and proven inventory stratification methodology based on research.

  • Inventory Stratification based on key distribution inventory metrics and profitability.

  • Multi criteria combination and weighted ABC analysis based on Sales, GM, GMROI, and Hits.

  • Multiple views and analysis by branch, regions, products, product family, supplier, etc.

  • Understand your inventory investments and corresponding Return-On-Investment (ROI).

  • Identify low performing and obsolete inventory, product families, branches and suppliers.

Technology Platform
  • Database: Microsoft Access

  • Application: Access VBA

  • Results Analyzer and Viewer: Microsoft Excel

  • Can be customized to company needs
Factsheet
Strat Plus
Inventory Stratification
(PDF 375 kb)
 
Route Plus
Routing & Cubing (PDF 530 kb)
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