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D2ID (Demand-driven Inventory Dispositioning)

Panalpina’s focus in Logistics is not on the storage of products but more on holding as little inventory as possible for its customers, and working with them to keep products moving. Logistics is about the constant flow of products. Things need to be moving – fast. Asset velocity is the key.


The overall goal is to have the right inventory at the right place at the right time and, most importantly, at the right levels.

Courtesy of Rockadove

Too much inventory ties up working capital and raises the risk of obsolescence, particularly with fast moving products such as mobile phones, tablets or high fashion items. Too little inventory will lead to stock-outs, missed sales and disappointed end consumers.


A few years back, Panalpina and Cardiff Business School, Cardiff University in Wales (UK), set out to search for the ‘hidden formula’ for lean inventories. This innovative partnership has allowed Panalpina to launch ‘Demand-Driven Inventory Dispositioning’ (D2ID), a new and advanced application for demand forecasting and inventory optimization.


D2ID allows us to analyze supply chain data in order to optimize inventories at SKU level, free up cash and improve service levels. Using the very latest in statistical methods, the application identifies the lifecycle behavior of your products and is able to forecast future demand. Your inventories and service level requirements in the supply chain can then be planned and optimized accordingly.


For further information about D2ID, please contact Andrew Lahy