In a previous blog post, I discussed the challenges planning and execution teams face in responding to increasing disruptions. From extreme weather to port closures, disruptions all too frequently upset these teams’ carefully defined plans for getting inventory from Point A to Point B — leading to stockouts and dissatisfied customers.
Since disruptions can never be eliminated, the solution lies in creating a fast, accurate and efficient way to optimally re-allocate inventory following a disruption. While many planning and execution teams still rely on human analysis, manual methods and consumer-grade spreadsheets, it’s clear that re-allocation is a complex problem that exceeds human cognition and time-consuming manual analysis. The stakes are high, the timing is urgent, and errors are costly.
Put Advanced Technology to Work — Quickly and Seamlessly
Enter Blue Yonder Intelligent Rebalancer. Fueled by artificial intelligence (AI) and machine learning (ML), Intelligent Rebalancer is a flexible, cloud-native microservice that can be easily, rapidly and seamlessly launched to address the complex problem of re-allocation.
As they re-allocate inventory in near real time, planners can apply the same robust AI and analytics they used to originally plan inventory allocation using Blue Yonder Order Management. Intelligent Rebalancer leverages an AI- and ML-enabled optimization engine to make complex trade-offs across all orders — considering cost, service, margins, sustainability and other business objectives — and arrive at optimal decisions in microseconds. When the next disruption occurs, it repeats this cycle, continuously improving outcomes via ML.
With the release of Intelligent Rebalancer, Blue Yonder is the first software provider to support inventory optimization in both the planning and execution stages.
Build Your Own Unique Digital Ecosystem
At Blue Yonder, one concern we hear from new customers is that, in their previous experiences, a new software launch itself represented a disruption. That’s why we’ve designed Intelligent Rebalancer as a cloud-native microservice that can easily be added on top of customers’ existing technology stacks.
Thanks to Blue Yonder’s microservices architecture, customers can embark on a composable journey — choosing the exact software capabilities and implementation pace that makes the most sense for them. Like the larger Blue Yonder Commerce portfolio, Intelligent Rebalancer can be deployed individually or with additional Blue Yonder microservices. This approach allows customers to augment their existing systems with the unique benefits of Intelligent Rebalancer.
Intelligent Rebalancer also integrates seamlessly with other third-party solutions and systems customers are running in their supply chains. The result is a dynamic, flexible and unique digital ecosystem that looks different for every customer — because no two supply chains are created equal. Here’s a look at how Intelligent Rebalancer integrates and complements three typical planning and execution tools:
- Planning systems help manufacturers and retailers ensure that critical inputs, capacities and labor resources are aligned to satisfy customer orders. Intelligent Rebalancer doesn’t replace these planning systems; it augments the original plan during execution, driving near real-time course correction and responsiveness. When the original fulfillment plan is created, companies have the luxury of time. But Intelligent Rebalancer acts quickly, accurately and strategically when conditions have changed — and time is of the essence.
- Enterprise resource planning (ERP) systems help wholesale distributors fulfill bulk orders of finished goods. ERP solutions monitor and support service levels, reconcile payments and support the sales team. Intelligent Rebalancer integrates smoothly with ERPs to infuse intelligent decision-making and speed up their reaction time — avoiding a difficult ERP upgrade. Distributors can easily modernize and upgrade their operations without ripping and replacing existing systems.
- Order management system (OMS) solutions are especially useful for hardlines and softlines retailers. They help manage multiple sales channels, delivery options and even the returns process. With the inherent complexity of last-mile delivery, many OMS solutions offer some level of order visibility and tracking. Intelligent Rebalancer can work across both inventory and order data to define the most efficient fulfillment plan.
Ultimately, Intelligent Rebalancer complements the capabilities of other planning and execution solutions — and ingests their data — to identify the optimal balance between customer satisfaction and profitable fulfillment.
Apply the Most Intelligent Solution to Every Disruption
What results can you expect from Intelligent Rebalancer? Let’s revisit the scenario we laid out in our first blog post.
If you’ll remember, ABC Corporation had 100 units of inventory on-hand across four distribution centers (DCs) — more than enough to satisfy customer orders for 80 units. Then, due to a storm, one DC carrying 40 units of inventory was suddenly out of operation, leaving ABC with a shortfall of 20 units.
Instead of manually solving this problem — losing valuable time and profits — ABC can instead leverage the power of Intelligent Rebalancer to react in near real time. This solution uses AI and advanced data science to ensure the right ABC customers are prioritized, based on their configured allocation strategy. By considering all pending ABC orders, it re-sequences open demand and re-allocates inventory based on current — not planned — demand.
Because Intelligent Rebalancer accounts for labor and capacity, new orders are automatically re-routed across the network for efficient fulfillment, without straining existing operations. Once the storm has passed and the DC is back online, ABC can review the decisions Intelligent Rebalancer made via an intuitive dashboard. Planning and execution leaders can understand the reasoning behind the new plan and its ultimate effects.
Transform Re-Allocation into a Competitive Edge
Say the word “re-allocation” and even the strongest planning and execution teams shudder. That’s because re-allocation is often a mad scramble, where the results are often sub-optimal — simply because those charged with this task don’t have the right tools.
Intelligent Rebalancer changes all that, with advanced decision engines — powered by sophisticated, purpose-built algorithms — that perform all the necessary analysis and make rapid, profitable decisions. It’s easy to launch, easy to learn and easy to leverage for profitable, strategic re-allocation.
Reach out to Blue Yonder today — and learn how you can use Intelligent Rebalancer to transform the tough challenge of re-allocation into a significant advantage over slower-moving competitors.