ANALYTICS-DRIVEN

INVENTORY
OPTIMIZATION IN
SUPPLY CHAIN
OPERATIONS
TABLE OF DATA-DRIVEN APPROACH
AND INVENTORY
02
CONTENTS OPTIMIZATION TECHNIQUES

CASE STUDY: STARBUCKS

AND ROLE OF OPTIMIZATION
IN INVENTORY PLANNING 03
IMPORTANCE OF
01 INVENTORY
PLANNING
CONCLUSION AND
FUTURE TRENDS 04
The more inventory a company has
the less likely they will have what
they needs.
—TAIICHI OHNO
 INTRODUCTION
AND
IMPORTANCE OF
01 INVENTORY
PLANNING
INTRODUCTION AND IMPORTANCE OF
INVENTORY PLANNING
- IMPORTANCE OF INVENTORY PLANNING
COST
OPTIMIZATION
Proper inventory planning helps in
minimizing the costs associated with
overstocking and understocking. It reduces
the need for emergency shipments and
excess storage space
CASH FLOW
MANAGMENT
Proper inventory planning helps in
minimizing the costs associated with
overstocking and understocking. It reduces
the need for emergency shipments and
excess storage space
SUPPLYCHAIN
EFFICIENCY
A robust inventory planning process leads to
streamlined operations. By aligning inventory
levels with production schedules and customer
demand, businesses can avoid bottlenecks and
manage resources more efficiently.
CUSTOMER
SATISFACTION
Having the right inventory when and where
it's needed leads to higher service levels and
customer satisfaction. This, in turn, can lead
to repeat business and customer loyalty.
INTRODUCTION AND IMPORTANCE OF
INVENTORY PLANNING
- CHALLENGES IN INVENTORY PLANNING
BALANCING UNDER AND INVENTORY
OVERSTOCKING COST
Mercury is quite a Saturn is a gas giant
small planet and has rings
FORECAST PRODUCT LIFE
ACCURACY CYCLE
Venus is the second Neptune is very far
planet from the Sun away from Earth
SUPPLYCHAIN SKU
DISRUPTION COMPLEXITY
Despite being red, Jupiter is the biggest
Mars is a cold place planet of them all
DATA-DRIVEN APPROACH AND INVENTORY OPTIMIZATION
TECHNIQUES

BETTER
DEMAND DIH AND
FORECASTIN SHELF-LIFE REORDER
G ANALYSIS POINT
DATA-DRIVEN APPROACH AND INVENTORY OPTIMIZATION
TECHNIQUES

INVENTORY SKU
TURN OVER INVENTORY RATIONALIZA
RATIO AUDITS TION
 MARKET
DIVERSIFICATION
New

DEVELOPMENT
STRATEGY
STRATEGY
MARKET

MARKET PRODUCT
Current

PENETRATION DEVELOPMENT
STRATEGY STRATEGY Use a different color
for the strategic
option you
Current New recommend the
PRODUCT company to choose
INTRODUCTION AND IMPORTANCE OF
INVENTORY PLANNING
-Inventory
CHALLENGES INtaskINVENTORY
planning is a complex BALANCING UNDERSTOCK AND
that comes with several PLANNING
challenges, often requiring a nuanced approach to manage
OVERSTOCK
effectively.

PRODUCT LIFE CYCLE

MANAGEMENT

MARKET DYNAMICS AND

COMPETITION
 PROJECT &
STRATEGY
DEFINITION
You can give a brief description of the topic you want to
talk about here. For example, Mercury, you can say that it’s
the smallest planet in the entire Solar System
STRATEGIC PLANNING
PROJECT PLAN
STEPS

KICK-OFF
WEEK 1 2 3 4 5 6 7 8 9 10 11 12

BUSINESS INSIGHT
Workshop #1
MISSION AND VISION

KEY OBJECTIVES

STRATEGY MAP

BALANCE SCORECARD

STRATEGIC OBJECTIVES
Workshop #2
FIRST REPORT
STRATEGY MAP & BALANCED
SCORECARD STRATEGIC OBJECTIVES
PERSPECTIVE
S
F1 - Insert your F2 - Insert your F3 - Insert your F4 - Insert your
FINANCIAL
own text own text own text own text

C1 - Insert your C2 - Insert your C3 - Insert your C4 - Insert your

CUSTOMER
own text own text own text own text

INTERNAL I1 - Insert your I2 - Insert your I3 - Insert your I4 - Insert your

PROCESS own text own text own text own text

LEARNING AND L1 - Insert your L2 - Insert your L3 - Insert your L4 - Insert your
GROWTH own text own text own text own text
 IMPACT OF THE RISKS
40 35
% %
VENUS JUPITER
It has a beautiful name It’s the biggest planet

10 15
% Follow the link in the graph to modify its
%
MARS data and then paste the new one here. SATURN
Mars is actually cold For more info, click here Saturn is a gas giant
KEY DRIVERS
OF THE DESCRIPTION EXAMPLE

PROFIT
THE SITUATION
You need to provide a neutral
description with facts that you know
Our company has been selling its
products in the US for 10 years, with
your audience will agree on an annual profit growth above 10%

With a market share already above

THE The complication is a desired change
40%, profit growth will be limited in
COMPLICATION of the current situation
the United States

The question that implicitly results Should we enter the European market
THE QUESTION from the complication right now?
AWESO
ME
WORDS
DECISIONS: NEW
MARKET, NEW
PRODUCT, NEW
DESIRABILITY
What is the potential demand for

COMPANY
our product in this new market?

PROFITABILITY FEASIBILITY
What will be the profitability of What is the feasibility to enter this
this strategic initiative? new market?

SWEET SPOT
STRONG BUSINESS PLAN
TECHNOLOGI
POLITICAL CAL
Venus is the second planet
from the Sun
P T Earth is the only planet
that harbors life

ECONOMICAL LEGAL
Neptune is the farthest
planet from the Sun
E L Jupiter is the biggest
planet of them all
ENVIRONMEN
SOCIAL TAL
Saturn is a gas giant and
has several rings
S E Mercury is the closest
planet to the Sun
STRONG BUSINESS CASE
NET PRESENT TANGIBLE
PROJECT COST
VALUE BENEFITS
$4M $8M $14M

CASH FLOW CHANGE IMPACT

Low

Medium

High

INTANGIBLE BENEFITS STRATEGIC ALIGNMENT RESOURCES

Insert your own text here Insert your own text here * Follow the link in the graph to
modify its data and then paste
the new one here.
SPONSOR Sponsor name MANAGER Manager name For more info, click here
FINANCIAL MODEL
HISTORICAL RESULTS FORECAST PERIOD
INC MODEL 2014 2015 2016 2017 2018 2019 2020 2021 2022
BALANCE SHEET
ASSETS
CASH XX XX XX XX XX XX XX XX XX
ACCOUNT XX XX XX XX XX XX XX XX XX
INVENTORY XX XX XX XX XX XX XX XX XX
CURRENT
XX XX XX XX XX XX XX XX XX
ASSETS
PROPERTY XX XX XX XX XX XX XX XX XX
GOODWILL XX XX XX XX XX XX XX XX XX
TOTAL XX XX XX XX XX XX XX XX XX
FINANCIAL MODEL

75% 25%
MOO CERE EART
VENUS MARS N S H
Venus has a Mars is actually Follow the link in the graph to modify its data and then paste the new
beautiful name a cold place one here. For more info, click here
 PRICING STRATEGY

ADVANCED LEADING
BASIC STANDARD

LEVEL 1 2 3 4

PERCENTAGE 20% 70% 9% 1%

- Insert your - Insert your - Insert your - Insert your

description here description here description here description here
- Insert your - Insert your - Insert your - Insert your
DESCRIPTION description here description here description here description here
- Insert your - Insert your - Insert your - Insert your
description here description here description here description here
CONSUL
TING
PROPOS
AL
You can enter a subtitle here if
you need it
02
A PICTURE IS
WORTH A
THOUSAND
WORDS
 A PICTURE
ALWAYS
REINFORCES
THE CONCEPT
Images reveal large amounts of data, so
remember: use an image instead of a long
text. Your audience will appreciate it
 ANSWERS AND SUPPORTING
REDUCE COSTS THROUGH OPERATIONAL
ARGUMENTS
IMPROVEMENTS
OUTSOURCE NON- SIMPLIFY CORE
CORE FUNCTIONS REVIEW SUPPLIER
FUNCTIONS TO SAVE PROCESSES TO SAVE COST TO SAVE $1M
$3M $1M
Evaluate cost and service Select and review current
Design current processes
level of potential partners supplier costs

Compare process to best-in- Evaluate cost of potential

Select non-core functions
class benchmarks alternative suppliers

Choose one partner for each Adopt best practices based Negotiate supplier
function on benchmarks contracts/choose options
INITIATIVE
PRIORITIZATION
MATRIX:
IMPACT
IMPACT & EFFORT
EFFORT
An initiative with a high impact would mean The “effort” criteria is assessed based on the
one of the following: following concepts:
⎼ The initiative needs to happen in order to ⎼ Ease of implementation
achieve the desired future state ⎼ Time frame required
⎼ The initiative will significantly reduce ⎼ Resources required (number of people,
the cost or increase our revenue capital investment, etc.)
 PRIORITIZATION MATRIX
INITIATIVE IMPACT EFFORT
1 List all your potential initiatives Very high

2 List all your potential initiatives High

3 List all your potential initiatives Low

4 List all your potential initiatives High

5 List all your potential initiatives Very high

6 List all your potential initiatives High

CHANGE
MANAGE
You can enter a subtitle here if you need
03
MENT
it
CHANGE
MANAGEMENT
APPROACH
Do you know what helps you make your
point crystal clear?
Lists like this one:
● They’re simple
● You can organize your ideas clearly
● You’ll never forget to buy milk!
And the most important thing: the audience
won’t miss the point of your presentation
BUSINESS CASE
BUSINESS
Mercury is quite a
small planet 1 NAME
4 Earth is the third
planet from the Sun

Jupiter is the biggest

planet of them all 2 COMPANY
LOGO HERE 5 Mars is actually a
very cold place

Venus is the second

planet from the Sun 3 08/14/2XXX
6 Neptune is very far
away from Earth
COMPETITOR
COMPARISON
TABLE
ATTRIBUTES COMPETITOR A COMPETITOR B MY BUSINESS

PRICE $148 $420 $841

QUALITY Low Medium High

CUSTOMER AGE 25-35 18-55 18-60

REPUTATION Bad Average Good

LOCATION Spain Italy USA

 TARGET
MOTIVATIONS
40%
MARS ● Venus
● Saturn
60% ● Neptune
SATURN ● Mars

NAME INTERESTS FRUSTRATIONS

Jim Bones
80% INVENTORY Despite being red,
AGE Mars is a cold place.
35 years old It's full of iron oxide
90% CONTROL dust, giving the planet
OCCUPATION its red cast
MANAGEME
Manager 60%
NT
IMPLEMENT, TRACK &
MANAGE PROGRESS
MANAGE PROGRESS
PROGRESS STATUS LINK
VENUS 35% www.yourlinkhere.com

MARS 62% www.yourlinkhere.com

NEPTUNE 80% www.yourlinkhere.com

JUPITER 71% www.yourlinkhere.com

EARTH 26% www.yourlinkhere.com

SATURN 96% www.yourlinkhere.com

CHANGE
MANAGEMENT SIZE OF THE CHANGE

COMPLEXITY OF THE CHANGE

STRATEGY & PLAN
EXTREM
E
Insert name of
the change
Insert name of
the change
Insert name of
the change
Insert name of Insert name of Insert name of
HIGH the change the change the change
Insert name of
MEDIUM the change
MODERA
TE

LOW

1 team impacted 1 business unit 1 division Half company Extreme

 04
IMPLEMENTI
NG
CHANGES
You can enter a subtitle here if you need it
SALES AND STRATEGY PLAN

1 2 3
INTERNAL EXTERNAL
IMPLEMENTATION
ANALYSIS ANALYSIS

5 4
SALES PLAN SALES STRATEGY
418,000
Big numbers catch audience’s attention
ABOUT THE
TERMS OF
THE TERM 1
Mercury is the closest
AGREEMENT planet to the Sun

TERM 2
Saturn is a gas giant and
has several rings

Follow the link in the graph to modify

its data and then paste the new one here.
For more info, click here
 $4,814,000
Jupiter is the biggest planet of them all

$20,000
Venus has a beautiful name

$4,000
Earth is the third planet from the Sun
MANAGEMENT APPROACH

MARCH APRIL MAY JUNE

Mercury is quite a Despite being red, Neptune is very far Jupiter is the biggest
small planet Mars is a cold place away from Earth planet of them all
STRATEGIC
ALLIANCES
MARS
Mars is full of iron
oxide dust, which gives
the planet its reddish
cast

VENUS
Venus has a beautiful
name and is the second
planet from the Sun
 ANSWERS AND SUPPORTING
ARGUMENTS
WRITE YOUR QUESTION
SATURN MARS VENUS
Is Saturn composed mostly of Is Mars actually a cold place Is Venus a terribly hot planet,
hydrogen and helium? despite being red? even more than Mercury?

WRITE YOUR ANSWER

NEPTUNE MERCURY EARTH
Neptune is the farthest planet Mercury is the smallest planet in Earth is the only planet that
from the Sun the Solar System harbors life in the Solar System
WATERFALL MANAGEMENT
PLAN
Mercury is the closest
REQUIREMENTS
planet to the Sun

Venus is the second

planet from the Sun DESIGN

Neptune is the farthest

planet from the Sun IMPLEMENTATION

Jupiter is the biggest

planet of them all VERIFICATION

Despite being red, Mars

is a cold place MAINTENANCE
MATURITY MODEL
BASIC STANDARD ADVANCED

35 53 71
% % %

Mercury is the smallest planet Venus has a beautiful name, Mars is actually a cold place.
in the Solar System but also high temperatures It’s full of iron oxide dust
 PROFITABILITY RATIOS
WORST PEER BEST PEER

RETURN ON SALES (%) % % %

RETURN ON EQUITY (%) %

RETURN ON NET ASSETS (%) % %

RETURN CAPITAL EMPLOYED (%) %

RETURN ON FUNDS EMPLOYED

% %
(%)

Company 1 Company 2 Company 3

TOP 10
QUESTIONS OF
BUSINESS
1 What is your situation? Who are the key players? 6
PLANS
2 What is your vision? How to make a difference? 7

3 How to reach your vision? What is your marketing plan? 8

4 What do you offer? What are your economics? 9

5 How big is the market? What do you need to start? 10

 DEMO
SOFTWARE
You can replace the image on the
& APP
screen with your own work. Just
right-click on it and select “Replace
image”
 OUR TEAM
JENNA DOE
You can speak a bit
about this person here

JIM JAMES
You can speak a bit
about this person here
THANKS
!
DO YOU HAVE ANY QUESTIONS?
youremail@freepik.com
+91 620 421 838
yourwebsite.com

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 Starbucks Case Study: Starbucks uses a data-
driven approach in supply chain management
• Customer Insights: Starbucks collects data about what, where, and when members buy coffee through
its mobile app and customer loyalty cards. This data helps them understand customer preferences and
habits.

• Predictive Analytics: Starbucks uses predictive analytics to suggest other similar products that a
customer might be interested in trying. This is done through targeted and personalized marketing, which
also allows Starbucks to tempt back customers who haven’t visited recently.

• Inventory Management: Starbucks has a robust supply chain strategy that quickly reacts to changing
market conditions of customer demands. They use automation technology to streamline various
operations, allowing them to efficiently deal with their inventory.
 Real-Time Demand and Supply Shaping
Starbucks has developed a program called the “Digital Flywheel,” which analyzes 900 million weekly
transactions. This program takes into account customer purchases, store locations, meteorological data,
inventory data, and more. Here’s how they shape demand and supply in real-time:

Personalized Offers: Starbucks uses the data collected to micro-target customers with personalized offers
based on their preferences. This encourages customers to engage more closely with the brand and increases
sales.

Real-Time Adjustments: Starbucks uses digital tools, such as GPS tracking systems, to make necessary
adjustments and track shipments in real-time. This allows them to manage their inventory effectively and
ensure timely delivery of products.

Supplier Collaboration: Starbucks collaborates with suppliers to compile information to improve supplier
performance. This helps them identify supply chain trends and pinpoint supplier product availability issues.
 Role of Optimization in Starbucks’
Inventory Planning
Starbucks uses optimization as a key component of its inventory planning. They employ automation
technology to streamline various operations, allowing them to efficiently deal with their inventory. This includes
gauging inventory needs and optimizing scheduling by hiring more or fewer people depending on the historical
traffic of a store.

Starbucks claims the success of this implementation has allowed its employees to focus on building customer
connections, instead of scheduling and calculating inventory.
 Benefits of Optimization in
Starbucks’ Inventory Planning
Reducing Holding Costs: By maintaining optimal inventory levels, Starbucks can reduce the costs associated
with storing excess inventory.

Preventing Overstock: Optimization helps Starbucks prevent overstock situations, which can tie up capital and
lead to waste due to product obsolescence.

Improving Quality Control: By maintaining optimal inventory levels, Starbucks can better manage quality
control processes.

Reducing Lead Times: Optimization can help Starbucks reduce lead times by ensuring that the right amount of
inventory is available when needed.

Enhancing Customer Service: By ensuring that products are available when customers want them,
optimization can enhance customer service.
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