Inventory Optimization API

About the API

The Inventory Optimization API enables clients to add advanced decision support and automation to their Order-to-Cash process. 

The API provides demand forecasts and purchase order suggestions for each product based on historical demand and the current state of the inventory. In addition, it classifies the products based on their value for the business, enabling customers to manage their liquidity more efficiently. Lastly, it provides insights into each product, including the seasonality and the current stage of the product’s life cycle.

Features of the API

Inventory Optimization is an example of an “AI as a service,” meaning that you can easily offer complex machine learning functionality to your customers. We handle everything related to modelling, training and hosting, making offering machine learning at scale as simple as integrating with our API.

An example of a use-case is a wholesaler with a portfolio of 1000 products, some with higher sales volume, and some rarely sell. The wholesaler needs more time and mathematical expertise to estimate the required stock levels of each product. It is also not feasible to carry a large stock of all products, as this would tie up too much liquidity. Using Inventory Classification, the wholesaler would get insight into which products should be in stock and which should be ordered on demand. The wholesaler would get optimal product forecasts and purchase order suggestions for the products in stock. This would give the wholesaler insights into the realistic future demand of each product and the required replenishment needed to meet this demand. 

If the wholesaler disagrees with the model’s forecasts, they could override them. In this case, the API will consider the wholesaler’s forecast when computing the purchase order suggestions. When computing the purchase order suggestions, the API considers several data points, including the product lead time, the user’s preferred replenishment interval, safety stock, minimum product order quantity and minimum supplier order value.

Why use the API

By seamlessly integrating with our Inventory Optimization API, your customer can improve the liquidity, customer satisfaction and efficiency of their Order-to-Cash process while remaining in complete control.

Questions? 

Please contact us at hakon.ruud@visma.com