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Inventory Optimization Software

Inventory that knows where to sit, how much to hold, and when to move.

Sophus unifies multi-echelon inventory optimization, safety stock optimization, and replenishment into one AI-driven engine, so working capital funds growth instead of sitting in a warehouse.

20-25%

Inventory reduction

15-20%

Inventory turn improvement

30-50%

Customer service level improvement

!

Higher order fill rate

Trusted by Growing Companies at Every Stage of Network Design Maturity

kitchen craft
good year
hisense
tompkins
grupo boticario
midea

Three Questions: One Impossibly Answer

Every Supply Chain/Planning leader is really trying to answer the same three questions: where should we stock it, how much should we stock, and when should we replenish it. The answers look simple. They rarely are, because each one is driven by a different web of interconnected variables.

Where?

Where to stock it

How much?

How much to stock

When?

When to replenish

Where to source and where to produce

Central DC vs. regional DC vs. store

Omnichannel and micro-fulfillment sprawl

Goods in-transit and in-process across the network

Forecasted demand and demand volatility

Demand forecast accuracy by SKU

Seasonality and MOQ / MPQ constraints

Service level requirements by SKU and customer

Lead times and lead time variability

Production lead time vs. source lead time

Non-substitutable or custom-made SKUs

Coordination across functional groups

Sophus Solution

One model, three decisions, solved together.

Multi-echelon inventory optimization, safety stock optimization, and Replenishment used to live in three separate exercises. Sophus runs them as one connected model, so a change in one answer automatically updates the others.

Multi-Echelon Inventory Optimization

Model your full network, from central DC to regional DC to every node between, and get a recommendation for where each SKU should sit and how it should be replenished, not location-by-location guesswork.

Safety Stock Optimization

Calibrate safety stock at the SKU-location level to hit your service level agreement at the lowest possible cost, accounting for demand variability and lead time variability, down to the individual node.

Segmentation & Replenishment

Classify every SKU by demand pattern, value, and order frequency, then time replenishment and reallocation so capital keeps moving instead of sitting on a shelf.

Why sophus

Because these three decisions shouldn’t live in three tools.

Most teams solve where, how much, and when with separate spreadsheets, separate point tools, or a planner’s judgment. That works until the network changes, and it always changes.

The Old Way

Point-in-time planning

Safety stock and network reviews run quarterly or annually, so recommendations are already stale by the time they’re used.

One policy for every SKU

A single safety stock rule or reorder point gets applied broadly because calculating it per SKU is too manual.

Disconnected tools

Network design, safety stock, and replenishment are solved separately, so a change in one doesn’t reach the others.

The Sophus Way

Continuously updated

Recommendations recalculate as demand, lead times, and SLAs shift, not on a fixed review cycle.

Segmented to the SKU-location

Every SKU at every location gets its own policy, driven by its own demand pattern and variability.

One connected model

Where, how much, and when are solved together, so a change anywhere in the network updates every recommendation.

Decisions We Power

Every recommendation is a trade-off, made for you

The Trade-Off

The Sophus Decision

Hold more safety stock to protect service levels, or free up working capital

Right-size safety stock per SKU-location to hit your SLA at the lowest cost, not both extremes

Stock centrally for efficiency, or regionally for speed

Place each SKU at the echelon that matches its demand pattern and required response time

Replenish on a fixed schedule, or react to every demand signal

Time replenishment to SKU segment: fast movers get tighter cycles, slow movers get wider ones

Treat every SKU the same, or build a custom policy for each

Segment SKUs automatically by value, volatility, and order frequency, then apply the right policy to each group

How it works

How Sophus gets you there

A single, repeatable workflow, from raw sales data to a replenishment plan your team can execute this week.

Segment

Product/SKU segmentation based on demand pattern, order frequency, and value.

Model the network

Multi-echelon modeling across every node, lane, and lead time in your supply chain.

Calibrate safety stock

SLA-aware safety stock per SKU-location, sized to actual demand and lead time, variability.

Recommend & reallocate

Concrete replenishment quantities, reorder points, and inventory reallocation plans.

Where the impact shows up

Patterns we see across complex, multi-SKU networks

consumer-goods
Retail & Consumer Goods

Cutting safety stock without missing seasonal peaks

Separating true demand volatility from forecast bias lets teams hold less buffer stock year-round while still protecting service levels during seasonal spikes.

Lower safety stock

Protect peak demand

Life Sciences & High Tech

Protecting service levels on custom, non-substitutable SKUs

Sizing safety stock per SKU-location, instead of a blanket policy, shrinks redundant buffers on interchangeable parts while safeguarding the SKUs that can’t be swapped.

SKU-level buffers

Protect critical SKUs

high-tech
food-&-beverage
Food & Beverage / 3PL

Shifting inventory out of regional DCs without breaking SLAs

Multi-echelon modeling identifies which regional buffers are redundant with central stock, freeing capital without adding delivery risk.

Reduce regional stock

Protect SLAs

Inventory optimization doesn’t work in isolation

It connects to how you design your network, forecast demand, move product, and manage risk. Explore the rest of the Sophus platform.

supply chain network design

Network Design

Decide where DCs and plants should sit before you optimize what’s inside them.

Demand Forecast

Feed inventory optimization with sharper forecasts and a realistic replenishment cadence.

Logistics Optimization

Move inventory efficiently once you know exactly where it belongs.

Risk & Resilience

Stress-test your inventory strategy against disruption and sustainability targets.

Not ready to book a call?

Find out how Sophus keeps your inventory where it belongs

Tell us about your network and we will follow up with what an optimized version could look like, no meeting required yet.

Verified By Gartner Peer Insights

What Verified Users Say on Gartner

4.8 ratings on Gartner Peer Insight

Common Questions

Common questions on inventory optimization

What is multi-echelon inventory optimization (MEIO)?

MEIO plans inventory across every tier of your network at once (plants, DCs, stores) instead of location by location. It recommends where each SKU sits and how much buffer each node needs, so you hit the same service level with less total inventory.

What's the difference between cycle stock and safety stock?

Cycle stock covers expected demand between replenishments, sized to order quantity and frequency. Safety stock is the buffer on top for the unexpected: demand spikes or late deliveries. One covers the plan, the other covers when the plan is wrong.

What is safety stock optimization, and why does it matter?

It’s calculating the right buffer per SKU and location based on demand variability, lead time, and your SLA, instead of a flat rule like “two weeks everywhere.” Get it wrong and you either stock out or tie up capital you didn’t need to.

How do you calculate the right amount of safety stock?

By SKU-location: demand volatility, lead time variability, required service level, and constraints like MOQ or non-substitutable parts. It’s recalculated continuously, not set once a year.

What's the best AI-driven approach to multi-echelon inventory optimization?

One that solves segmentation, network modeling, and safety stock together, not as three separate tools. That way a change in one instantly updates the others.

How much working capital can inventory optimization free up?

Sophus customers typically see 20-25% inventory reduction, 15-20% better inventory turns, and 30-50% better service levels, plus lower logistics cost in many networks.

Does inventory optimization replace our ERP or planning tools?

No. Sophus reads data from your existing ERP, WMS, and planning tools, then pushes reorder points and reallocation plans back into them.

How long does it take to see results?

First recommendations typically land within weeks of connecting your data, not quarters.

Ready when you are.

Stop guessing.
Start Optimizing.

See how Sophus turns your demand, lead time, and network data into a concrete inventory plan: where to stock, how much, and when.