Right Sized Inventory
Thanks to NMSBA,our statistical anomaly recognition and resolution capability has been very well received by our customers and undoubtedly contributed to us closing all of our large customer deals since the completion of this project.
For 15 years, David Cook worked in supply-chain operations either as a company employee or as a consultant. During this time, Cook watched as hundreds of businesses attempted to solve inventory challenges with little more than spreadsheets. Cook then brought together individuals with similar interests and formed Right Sized Inventory. His goal was to create a computer-driven analysis platform that would enable users to identify and maintain an optimal amount of inventory for any item in any location.
Although his original software design worked well, Cook struggled with the ability to flag statistical “anomalies” in a way that reliably helped users fine-tune their inventory analysis. Sandia posted Cook’s problem on its SharePoint® site, where Andy Scholand of Sandia National Laboratories spotted it and was immediately intrigued. Scholand has extensive experience working on large-scale, agent-based
economic models of critical infrastructures, such as food distribution, manufacturing, and petrochemical processing.
Sandia achieved three improvements: statistically valid identification of outliers, trend, and seasonality. These improvements dramatically improved customers’ability to refine their inventory analysis, making the Right Sized Inventory software more accurate and dependable. The company has added revenues of approximately $50,000 since rolling out the improved software, with much larger revenues expected in the coming years. Cook is excited about his highly scalable but reasonably priced software, and he sees huge market opportunities for continued growth. Scholand is similarly excited about this technology, as
it provides real insight into a very common problem businesses often fail to recognize, with a solution that can lead to substantial cost savings.