Inventory Optimization: Impact of a Multi-echelon Approach

Inventory optimization’s business mission is to right-size an organization’s inventory investment to meet a given service target. But what approach most helps supply chain professionals find that perfect balance between service and investment? This Aberdeen research report finds that companies using multi-echelon inventory optimization (MEIO) have a more comprehensive understanding of their inventory and are twice as capable as others of balancing cost and service levels across their network. It shows that the leading driver for inventory optimization adoption is the need to reduce inventory carrying costs, and finds that multi-echelon inventory optimization users are twice as likely to adopt advanced supply chain capabilities such as inventory segmentation, replenishment and event management than non-MEIO users.