Maximo inventory insights is IBM’s new SaaS extension to Maximo asset management which offers predictive inventory optimization for Maximo asset maintenance inventory. Maximo inventory insights combines the power of IBM’s SPSS predictive analytics with the simplicity of a completely pre-built and automatic solution, with the convenience of SaaS delivery. Most organizations that use Maximo asset management for asset maintenance often have up to millions of inventory items that they are trying to manage with hundreds of millions of dollars tied up an inventory.
Organizations often carry too much inventory typically five to ten percent more than necessary for a 10 million dollar inventory then organizations can be over stalked by a million dollars holding costs to store manage and finance the excess inventory can be ten to twenty percent of the value of the excess inventory, without the insight to this situation these organizations have excess holding costs of 100 to 200 thousand dollars per year, on the other hand organizations cannot afford to be out of stock on critical parts and materials, every minute that an organization’s asset is down due to lack of critical parts costs the organization money.
Organizations simply don’t have the time or people to manage millions of inventory items manually and thus aren’t able to take advantage of all the various types of inventory data that they are collecting today, in addition ever-increasing inventory transactions lead to constantly changing data which requires ongoing management and management decisions.
Say you’re the inventory manager of a utilities company. To figure out which items in your inventory are overstocked or are under stocked, you’d need to spend five to ten minutes per item to compare lead times, quantities, transaction history, seasonality and so on, this would take literally years to complete and that assumes all the patterns and conditions remain the same.
Even more challenging how do you analyze the data over time to determine if the problem gets bigger or smaller in the future or becomes a problem when there isn’t one today. That’s where Maximo inventory insights can help.
Before Maximo inventory insights, if you wanted to perform the same sophisticated analytics, you would need to :
- Select and obtain advanced analytics software
- Install and configure it
- Find a data scientist
- Profile the inventory data
- Model the predictions
- Test and tune the model
- Configure it to work with your inventory data
- Figure out what the model is saying about your inventory, and finally . . .
- Update your Maximo database with the models recommendations.
Now with Maximo inventory insights all of this is done for you quickly and automatically, specifically Maximo inventory insights does the following five things :
- Extracts inventory data (simply and securely from Maximo asset management).
- Generates an inventory profile to help management quickly understand the inventory
- Highlights the areas of management focus that have the most positive impact on inventory
- Applies advanced predictive inventory optimization algorithms on the historical data to produce quantified recommendations for optimal reorder points for each inventory item and
- At the discretion of the user update any number of the reorder points in Maximo
IBM Maximo inventory insights was designed by IBM data scientists, inventory specialists and Maximo experts to simplify the use of advanced predictive technology to help turn your organization’s inventory data into profit. Request a free trial and see the benefits for yourself.