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Celonis Product Documentation

Inventory Management Master Data Improvement

Master Data Improvement, an Inventory Management app, enables planners to identify materials with outdated safety stock, reorder points, and lead times based on their consumption and replenishment patterns. The app provides recommendations with action flows to enable planners to easily correct parameters in the source system, resulting in improved supply chain planning, and reduced stockout and excess stock scenarios.

The Master Data Improvement app leverages data from purchasing, production, and sales to derive recommendations for the following planning parameters:

  • Purchase Lead Time (average, median, or based on Machine Learning)

  • Production Lead Time  (average or median)

  • Safety Stock (King’s formula)

  • Reorder Point (Lead Time Demand + Safety Stock)

Any of the calculations used to achieve the parameters above can be customized during implementation to account for specific rules used in your business or replaced entirely by your custom formula.

These Material Insights are contextualized with your current planning parameters and as well as all transactional data being considered during calculations. To help you better understand the impact of different factors, the app offers an exhaustive simulation feature for business users to compute their own parameters.

Finally, business users have the option to write either the recommendation made by Celonis or their own simulated value back to the ERP system.