Inventory Management Maturity Model

Level 1 : Manual Inventory Management

• Manage incoming and outgoing inventory Excel or manual register
• No central system to see inventory across the enterprise
• Huge delay in processing of sales and inventory updates 
• No ERP system available, even billing might be done manually

Level 2: ERP Enables Inventory Management

• Near Real Time Data flow architecture across the ERP systems
• Single source of truth for inventory
• Day -1 update of inventory and updates

Level 3: Auto Replenishment Enables Inventory Management

• Automated replenishment of repeated orders
• Reduced Inventory holding cost without impacting forward cover
• Central and regional ARS enabled distribution system

Level 4: Planning and Forecast Driven Inventory Management

• Demand Forecasting system enabled Merchandising Planning
• Open to Buy enabled purchase order management
• Replenishment Optimisation based on product lifecycle
• Business Analytics driven by Day-1 data warehouse setup

Level 5: Actionable Insights Driven Inventory Management

• Contextual BI and actionable Insights driven operational decisions
• Near Real time perspective analytics to end user
• Track Inventory ageing and forward cover
• Optimised Push & Pull Strategy for profit centers driven inventory control
• Near real time to real time business analytics supported by OLTP systems