Leveraging Inventory for Profitable Growth


Every supply chain team must optimize inventory investments with service level performance. Without proper balance, organizations run the risk of excess inventory and trapped working capital, or too little inventory and lost sales. Finding the right balance is critical to boosting service levels while reducing inventory costs. This research examines the current state of inventory optimization adoption, identifies the top pressures driving inventory optimization initiatives, and provides a breakdown of capabilities by industry.

Through advanced “what-if” scenario evaluations based on the use of Digital Twins, Multi-Echelon Inventory Optimization (MEIO) has shown to reduce inventory investment between 10 – 30% while improving customer service levels.

An overwhelming majority of respondents rely on their ERP system (77%) to manage inventory. This highlights a significant opportunity for companies to further reduce working capital through the use of more advanced solutions.

Inventory Optimization Study Overview

Logility partnered with Elastic Solutions, a leading provider of B2B marketing research services, to conduct a study – Leveraging Inventory for Profitable Growth – and now offering you you the results in this free survey! 100% of survey respondents participated voluntarily.

Over 100 survey respondents, representing more than 10 industries, participated in this study. All are located in North America.

One key takeaway: Multi-Echelon Inventory Optimization – the ability to optimize raw material, WIP, and/or finished good simultaneously across all nodes in the network– is how 48% of the respondents currently optimize inventory. Only 3% stated that they don’t perform any kind of inventory management or optimization.

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