MUFI Rating & Risk – ToolsGroup SO99 (Supply Planning)

MUFI Rating & Risk – ToolsGroup SO99 (Supply Planning)

MUFI: Maintainability, Usability, Functionality, Implement ability

Vendor: ToolsGroup (Select For Vendor Profile)

Introduction

ToolsGroup is a software vendor that is mostly known for its inventory optimization and multi echelon planning software for supply planning.

Application Detail

ToolsGroup supply planning application uses inventory management and multi-echelon planning functionality. ToolsGroup SO99 has what we consider to be the best graphing ability in supply planning for showing the relationship between inventory and service level. The relationship between inventory and service levels is non-linear; higher and higher service levels require disproportionate increases in inventory to support them. The closer service levels come to one hundred percent, the more extreme the costs become. This relationship is one of the best-documented relationships in supply-chain management and is described by the graphic below.

Service Level Inventory Relationship.pdf

This graphic has been seen at one time or another by most supply chain professionals, and it demonstrates the fact that companies must decide what levels of service they can afford and, most importantly, what levels of service their customers are willing to pay for.

ToolsGroup Service Level Inventory Graphic

ToolsGroup has this relationship curve built into their application. As you can see, their graph shows the same relationship as the graph on the previous page. Notice that there is a slider at the bottom of the ToolsGroup application view. This allows the user to see what the resulting inventory would be for different system-wide service levels. (Some other parameters can be changed, as well as observed, from below the main graphic.) 

It is impressive—considering all of the calculations that the ToolsGroup application has to perform to generate this graph—how quickly the graph can be adjusted by just moving the slider along the bottom. Behind the scenes, there is a fully configured model of the supply chain.

ToolsGroup SO99 is an impressive application in many ways, and the application covers both demands as well as supply planning. ToolsGroup brings a very high knowledge level to its projects, and this is another benefit in addition to the software. ToolsGroup is an excellent but complex application, and a company, which intends to use it, needs to make sure it is interested in funding this type of application.

MUFI Scores

All scores out of a possible 10.

Vendor and Application Risk

ToolsGroup SO99 faces the similar issues of the more heavyweight supply planning applications, which is one of being overwhelmed with the available functionality. Overall the SO99 application is well designed, and it has some productivity-enhancing features. As with all inventory optimization applications, there is a risk of implementing the technology without properly socializing what ToolsGroup SO99 is doing under the covers. Emphasis must be made on getting the business to understand inventory optimization.

Likelihood of Implementation Success

This accounts for both the application and vendor-specific risk. In our formula, the total implementation risk is application + vendor + buyer risk. The buyer specific risk could increase or decrease this overall likelihood and adjust the values that you see below.

Risk Definition

See this link for more on our categorizations of risk. We also offer a Buyer Specific Risk Estimation as a service for those that want a comprehensive analysis.

Finished With Your Analysis?

To go back to the Software Selection Package page for the Supply Planning software category. Or go to this link to see other analytical products for ToolsGroup SO99.

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References