Multi-Echelon Inventory Optimization Gets Cool

We’ve been in the Multi-Echelon Inventory Optimization (MEIO) business for more than 10 years helping companies such as Procter & Gamble, HP and Stanley Black & Decker gain competitive value through reduced inventory, freed-up working capital and improved service levels. We, along with our customers, think Voyager Inventory Optimization is cool. Supply Chain Digest’s Dan Gilmore agrees.

In a recent video (below), Gilmore discusses the advantages of inventory optimization (IO) as a standalone solution as well as part of an integrated supply chain management suite. We agree with him. Inventory optimization on its own has proven to be a sustainable process to free up millions of dollars in working capital by reducing inventory without impeding service levels. Unlike traditional “binge and purge” cycles of overproduction followed by brute-force reductions, savings are achieved while service is increased driving more profit to the bottom line.

We often hear companies say their current ERP provides inventory optimization. The truth is the vast majority of ERP systems do not have multi-echelon inventory optimization capabilities. These systems cannot drive the 10+ percent working capital reductions a best-of-breed inventory optimization solution can. Procter & Gamble relies on Voyager Inventory Optimization and saved more than $100 million in its Beauty & Grooming division alone. [Case Study]

Gilmore takes it a step further, explaining 1+1 can equal 3 when you take best-of-breed IO software such as Voyager Inventory Optimization and integrate it with supply and / or demand planning. This powerful combination, well…I think you should just hear it from Gilmore himself.

Logility Staff

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