GRA's 4C Analysis is a sophisticated, fact-based analysis that identifies easily implemented improvement opportunities.
It optimises the 4Cs such as capital, costs and customer service levels and capacity and focuses on policies, planning practices and systems.
The 4C Analysis uses bottom-up and fact-based modelling to determine what products should be stocked in what locations and how much inventory should be held by product and by location.
The 4C analysis considers service level targets, costs throughout the supply chain, demand volumes, logistics capacities and supplier constraints such as order minimums.
It determines the minimum amount of inventory required to meet service levels at the lowest cost and then highlights where the opportunities are to improve inventory balance. Once the model is established, the 4C Analysis can also be used to simulate other options.
The output creates a clear and auditable picture of the business case such as quantifiable financial and efficiency and performance improvements along with what is required to realise and sustain the benefits.
The 4C Analysis recommends a stocking policy in order to optimise inventories and costs against customer service level targets. The KPIs/benchmarks are supplied for demand, inventory and supply chain functions.