Order Quantity Optimizer
OQO calculates the cost-optimal order quantity, moment and vendor for thousands of SKUs every day — balancing every relevant cost factor at once instead of trading one off against another.
Standard lot sizing cannot keep up with a daily process.
Purchasing parameters tend to be set once and reviewed rarely. A lot size gets chosen at implementation, a reorder point is entered next to it, and both stay put while demand, stock levels, transport rates and supplier terms move every week.
What fills the gap is experience. Buyers develop their own rules of thumb — round up to a pallet, order a quarter ahead, stay with the vendor who answers the phone — and each of them is defensible on its own. Together they add up to a different purchasing strategy per person.
The cost of that shows up as a rounding error per order and a large number across thousands of SKUs: stock that sits too long, orders too small to earn the discount, transport paid twice, and write-offs on material that expired waiting to be used.
One calculation, all the cost factors at once.
OQO evaluates demand, current stock, open orders and purchasing agreements every day, per SKU. Against that it weighs the cost factors that actually compete: material price and volume discounts, the cost of placing an order, transport, holding cost, and the risk of obsolescence.
The optimisation runs inside your restrictions rather than around them — safety stocks, lead times, minimum order quantities, shelf life and contract terms are constraints in the model, so what comes out is executable.
The output is concrete: this quantity, at this moment, from this vendor. Because the model is back-tested against what your buyers actually ordered, the saving is measured against your own history before anything is rolled out — and buyers keep the last word on every recommendation.
- Product
- OQO — Order Quantity Optimizer
- Built for
- Purchasing, supply chain and planning teams
- Runs on
- Demand, stock and supplier agreement data
- Starts with
- A fixed-scope proof of value
Where it fits
- A repeat purchasing process with many SKUs
- Demand, stock and supplier agreement data available
- Real trade-offs between transport, holding and obsolescence
- Buyers willing to work from a recommendation
What OQO does — and what you get back.
What it does
- Recalculates order quantity, moment and vendor per SKU, every day.
- Balances material, ordering, transport, holding and obsolescence cost in one optimisation.
- Respects safety stock, lead times, minimum order quantities, shelf life and contract terms.
- Handles thousands of SKUs without a planner working through them one by one.
- Back-tests against past purchasing, so the saving is proven before rollout.
What you get
- 5 to 15% lower total cost, from balancing the cost factors instead of one at a time.
- One purchasing strategy across buyers, departments and sites.
- Less rework in procurement: fewer corrections, expedited orders and emergency shipments.
- Planners spend their time on exceptions rather than on routine reorder decisions.
- Less working capital tied up in stock, without giving up service levels.
Three steps to a number you can trust.
Fixed scope, your own data, and a business case at the end of it.
Scope & data
We pick one product group, bring together demand, stock and supplier agreement data, and agree which cost factors matter in your business.
Model & validate
The model is configured to your restrictions and back-tested against what was actually ordered, so the saving is measured rather than asserted.
Report out
We present the measured saving per product group, with the business case and what a wider rollout would involve.
Wondering what OQO would find in your process?
Tell us which process you would point it at first. We will tell you what it takes to prove it.
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