Multi-Echelon Inventory Planning
Challenges
With the increasing popularity of omnichannel and micro fulfillment, companies are facing a greater challenge in effectively managing their inventory. This is resulting in a buildup of excess inventory and a decline in profit margins compared to previous years. Historically, inventory planning has only taken into account a single aspect or location in the supply chain.
Sophus Solution
For each SKU, define the right inventory policy and answer.
Where to stock: Central DC or the regional DC?
How much to stock?
How should the inventory be replenished? Should the same amount be replenished every time, or should it be replenished to a certain level?
Benefits
Inventory turn improvement of up to
15-20%
Improvement in customer service level of up to
30-50%
Potential logistics cost reduction
More about the next generation of multi-echelon inventory modeling?