Gain control over every level of your inventory. Strategically manage stock levels to ensure efficiency and avoid disruptions.
MIO helps companies optimize inventory levels throughout their distribution networks. This type of supply chain planning successfully combines inventory optimization (how much stock to keep at each distribution level) with multi-echelon planning (deciding where to keep inventory at each distribution level). In multi-echelon inventory optimization, companies can strategically manage their inventory across all echelons of their supply chain. It treats inventory optimization from a comprehensive or globalized perspective, helping successfully optimize inventory throughout the supply chain. Multi-echelon inventory planning mitigates such issues by helping to optimize levels of stock at your upstream distribution points, while failing to meet the needs of downstream locations or vice versa. Enterprises that have integrated this method of supply chain planning into their inventory optimization have enjoyed many benefits as a result.
Without a strong inventory optimization strategy, companies may keep more stock throughout their supply chain, so they are prepared to meet consumer demand with enough stock ready at any one distribution point.
Sounds good, right? Well, unfortunately this approach is uneconomical, as well as unprofitable because it can lead to inventory excess, with too much capital tied up in stock that won’t move quickly enough.
Multi-echelon inventory optimization helps companies make better use of their capital, investing in optimal levels of stock that will move more fluidly throughout the supply chain.
Without successfully optimizing their inventory levels, enterprises may end up forecasting too low, resulting in inventory deficits. This means that they could potentially be out of a certain product a customer
wants or needs by the time inventory has moved downstream to the consumer. And, of course, this would hurt their customer service levels as they are not sufficiently meeting consumer demand.
When companies utilize multi-echelon inventory optimization, they can successfully forecast optimal levels of stock throughout their supply network — meeting consumer needs and keeping customers happy.
If companies fail to optimize their inventory levels, they may not be prepared for sudden changes in market demand or supply. With multi-echelon inventory optimization, companies achieve optimal
levels of stock throughout their supply chain. Having enough stock at any point throughout their distribution networks boosts an enterprise’s agility, helping them more quickly and strategically respond
to market and supply volatility.
Without a strategic approach to inventory optimization, enterprises handicap their ability to manage fluctuating lead times. Since suppliers’ estimates of lead times are not always accurate, sudden changes
in lead times can arise, leading to stock shortages, excess stocks, etc. Multi-echelon inventory optimization helps companies maintain optimal levels of stock throughout the supply chain network, so they
can quickly adapt and respond to lead changes as they come up.
Without a successful inventory optimization strategy in place, enterprises may invest too much capital in stock that is not moving fast enough through their supply chain. Multi-echelon inventory optimization
allows companies to manage optimal levels of inventory — so without too little or too much inventory, they can successfully meet consumer demand. This means better profits, and better returns on investments.
Inventory still moves the old way. Rebalancing and Reoptimizing inventory creates cost and service level improvements in supply chain.
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From optimizing inventory management to integrating advanced analytics, discover how our innovative supply chain solutions have empowered businesses to overcome challenges and enhance efficiency. Explore how CBC’s expertise has enabled organizations to adapt, grow, and thrive in a competitive landscape.
We optimize stock levels across multiple locations with multi-echelon inventory planning. Prevent excess stock, cut costs, and meet customer demands on time.
