Login   |   Resources   |   Contact

Multi-Echelon Inventory Planning

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

transportation-routes-planning

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 aftermarket spare parts inventory planning?