Seven Easy Estimates Reveal What to Expect from Inventory Optimization

The benefits of multi-echelon inventory optimization (MEIO) have been well established by hundreds of companies of all sizes in industries ranging from consumer products to life sciences, high technology to process and discrete manufacturing.

Leading organizations have shown that right-sizing inventory buffers and restructuring where and how inventory is held drives powerful financial benefits and adds tremendous value to the sales, inventory and operations planning (SIOP) process.

MEIO provides a knowledge platform for better decision making and lets organizations use inventory as a lever for balancing supply and demand.

Supply chain managers seeking to assess the potential financial benefits of an MEIO initiative can start with the high-level process outlined here.

Based on Logility’s 15 years of experience, this paper presents a good way to get the ball rolling, with seven simple estimates that help explore the impact an MEIO initiative can have on your organization.