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Value Chain & Operations

Replenishment & Purchasing

Establish product and channel service levels and define the ideal MTS/MTO mix that delivers market strategy

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How

SHAiPE: the LTPlabs framework

  1. Set the Decision

    • Define purchasing objective

      service, inventory, cost, cash, resilience

    • Clarify the decision level

      SKU, supplier, site, planning horizon

    • Set the replenishment moment

      daily, weekly, event-based, exception-driven

  2. Highlight what matters

    • Align on strategic metrics

      service level, stock cover, working capital, purchasing cost

    • Design the replenishment operation

      planning cadence, buyer workflows, response to demand shifts

    • Define business and operational constraints

      MOQs, lead times, multiples, contracts, supplier capacity

  3. Augment with AI

    • Combine demand, inventory and supplier data to define safety stocks and recommend the best order quantity, timing and supplier

    • Prescribe the replenishment action that delivers the best trade-off across availability, inventory cost and supply risk

    • Data
      Demand forecast
      Current stock
      Supplier conditions
      Service targets & constraints
      AI Model
      Results
      Order quantities
      Order dates
      Recommended supplier
      Explainability
    • Use LLMs to promote the explainability of the AI recommendations, supporting the discussion with suppliers or internal stakeholders

  4. Prototype your solution

    • Deliver a replenishment engine that decides which order to place, when, and with whom

    • Run a practical pilot to evaluate recommendations and operational impacts in a real planning setting

  5. Expand to scale

    • Integrate the solution with ERP and purchasing workflows

    • Train planning and procurement teams to maximize adoption

    • Establish governance and review routines to continuously improve decisions

Nutshell

What this means for your business

18%

stock investment while maintaining service levels

  • Lower purchasing cost by systematically capturing prices, MOQs, and supplier conditions in each order

  • Improved service levels and material availability with orders aligned to market needs and supply constraints

  • Less inventory and working capital through more accurate safety stocks and smarter quantities and timing

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