Celonis Material Allocation App Enhances Supply Chain Resilience by Reducing Excess Inventory

Celonis Material Allocation app enables companies to rebalance inventory based on intelligent insights and actions to reduce excess and avoid shortages

NEW YORK and MUNICH, May 14, 2024 - Celonis, the global leader in Process Mining, today announced that its Material Allocation app, which helps companies prevent stockouts and reduce excess stock, is now generally available. The Material Allocation app is one of Celonis’ Inventory Management apps, which empowers businesses to improve material availability, reduce operating costs, and free up millions in working capital.

“Traditional inventory management and ERP solutions aren’t built to deliver the information and insights material planners need to rebalance inventory effectively,” said Peter Budweiser, Director of Product Management at Celonis. “The Material Allocation app provides intelligent stock transfer recommendations based on business objectives and constraints, enabling businesses to build more agile and resilient supply chains.”

Today’s supply chain challenges require a new approach to inventory management

Balancing supply chain objectives is increasingly challenging. Service levels are under pressure from rapidly evolving consumption patterns and consumer expectations. Working capital is strained by volatile supply and demand disruptions that make inventory management difficult. Cost is difficult to manage due to inflation and the increasing cost of raw materials and strained resources.

Adapting to these challenges requires a new approach to supply chain and inventory management, one that empowers teams with a living, breathing view of material movements and interrelations and gives them intelligent recommendations driven by real-time consumption and replenishment patterns.

Material Allocation App: Effectively rebalance inventory to reduce excess and avoid shortages

Using the power of the Celonis Process Intelligence Graph, the Celonis Inventory Management apps are designed to help companies understand and improve inventory health and include the Control Center app, End-to-End Lead Times app, Master Data Improvement app, and the new Material Allocation app.

Working with outdated planning parameters, organizational silos, or inaccurate forecasts - or simply the volatile nature of today’s supply and demand - can lead to excess inventory in some locations and low material availability in others. The Celonis Material Allocation app leverages inventory, supply, and demand data across the entire organization to identify these excess and shortage situations and propose a rebalancing of existing inventory to close gaps and optimize your working capital. Using the App, teams are able to:

Obtain a unified view of materials. See the current inventory levels across locations and if they’re in excess, at risk of stockout or in a stockout.
Get the optimal stock transfer recommendations. Leveraging a mathematical optimization model, the recommendations can consider the business constraints required to ensure optimal action is taken.
Assess the total value potential of accepting the recommendations. Understand the total value opportunity at hand of accepting the recommendations.
Analyze the impact of accepting recommendations on upcoming demand. The inventory projections capability lets material planners review the impact of accepting stock transfer recommendations on upcoming demand to ensure the issuing plant is not at risk.

Learn more about Celonis for Inventory Management and the Material Allocation app

Find out why more than 800 of the world’s best Supply Chain departments run on Celonis, with these resources:

Celonis for Inventory Management department solutions
Optimize inventory with smart material allocation (on-demand webinar)
Celonis for Inventory Management datasheet

About Celonis

Since 2011, Celonis has helped thousands of the world’s largest and most esteemed companies yield immediate cash impact, radically improve customer experience, and reduce carbon emissions. Its Process Intelligence platform uses industry-leading process mining technology and AI to present companies with a living digital twin of their end-to-end processes. For the first time, everyone in an organization has a common language for how the business runs, visibility into where value is hiding, and the ability to capture it. Celonis is headquartered in Munich, Germany and New York City, USA with more than 20 offices worldwide.

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