Companies that embrace multi-echelon inventory optimization (MEIO) achieve, on average, a 28% increase in inventory turns.
This paper presents a simple, three-step approach that helps remove barriers to inventory optimization success and shows how leading supply chain organizations use powerful business process and technology enablers to achieve and sustain improved inventory performance.
Over time, the trade-off between customer service and inventory cost (known as an efficient frontier) can be adjusted to meet the risk profile of the organization. Implementing multi-echelon inventory optimization across the end-to-end, global supply chain creates previously unavailable trade-off curves that deliver higher levels of service at lower inventory cost. This “virtuous cycle” can be a powerful driver of continuous improvement for years.