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Inventory Management Pro (IM Pro)

IM (Inventory Management) Pro is McKinsey’s state-of-the-art inventory optimization solution

IM Pro

IM (Inventory Management) Pro is Mckinsey's state-of-the-art inventory optimization solution

What it is

IM Pro is our state-of-the-art inventory toolkit that uses advanced analytics to support inventory optimization efforts. It determines the optimal stock levels for each stock point, considering the full supply chain reality. IM Pro is customizable, quick to set up, and has a proven track record across industries.

Mathematical inventory optimization formulas on an SKU level

Very flexible configuration (for example weekly or monthly demand)

Various replenishment types (such as MTS, MTF, MTO and other)

Simulation features to test proposed inventory targets

Various demand patterns available (for example, sparse demand)

Additional industry-specific features included (for example, tank storage)

Multi-echelon optimization across a network of stock points

Check out a demo

IM Pro takes a structured approach to quickly assess and optimize your inventory performance end-to-end.

How it works

IM Pro comprises modules for data extraction, optimization, visualization, and validation

Data extraction

Pull data from ERP and APS systems

Modules for data cleaning​ and data preparation​ can be added easily

Optimization

Optimization of stock levels​ and order sizes​ based on advanced statistical models

Code in Python can be easily tailored to specific needs

Visualization

Web-based dashboard​ to visualize and analyze optimization potential

Customized dashboards​ can be added easily

Validation

Back-testing with historic data

Alternative scenarios​ to analyze typical improvement levers

What the output looks like

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Holistic stock analysis across​ all stock types, locations, and BUs

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Automated determination of dead-stock​ levels
Suggestion of management rules

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Automated computation of target stock levels, including work-in-progress​ buffers​ and spare parts

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Impact simulation for stock parameter adoptions

Applied at a large-scale global organization, IM Pro can support global multi-echelon optimization to set optimal inventory targets for each article and all stock points

IM Pro has delivered

5–20%

Service improvement

>450

Inventory engagements

IM Pro enables a typical inventory reduction of 20–30%

Typical inventory improvement realized

Percent of inventory optimization cases per impact bucket

Here are some client examples

A large chemicals company identified 24% inventory optimization potential backed by concrete levers by using IM Pro in supply chain diagnostics

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IM Pro used identified 30% inventory optimization potential for an automotive aftersales division of a large technology and services player

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IM Pro used at a producer of hygiene consumer products to achieve 19% reduction on finished goods inventory and 12% reduction on Raw material inventory

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By working with us, you will have access to

Experts

Our industry and functional experts will be on the ground where and when you need them.

Helpdesk

Our helpdesk will keep doors open and commit to addressing your concerns efficiently and effectively.

Training

We offer coaching and build capabilities for your teams to deliver sustained improvements.

Implementation

We partner with you and co-create a firm path to implementation as part of the project.

Connect with us to find out more

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