Multi-Echelon Inventory Optimization
The problem
Many organizations manage inventory decisions location by location, without fully understanding how stock levels, demand variability, lead times, and service requirements interact across the entire network. This often creates excess inventory in some locations, shortages in others, and unnecessary pressure on working capital.
Common Challenges
Is your inventory network working against you?
Managing inventory across multiple plants, warehouses, and distribution centers is a balancing act. Without coordinated inventory policies, organizations often increase inventory without improving service—or improve service at an unsustainable cost.
Inventory is optimized locally, not across the network
Each location makes inventory decisions independently, leading to excess stock in some facilities while others experience frequent shortages.
Safety stock is based on assumptions
Inventory buffers are often defined using static rules or manual calculations instead of actual demand variability, lead times, and service objectives.
Service levels come at the expense of inventory
Many organizations increase inventory to improve product availability without understanding whether that investment delivers meaningful service improvements.
Network-wide trade-offs are difficult to evaluate
It’s challenging to understand how inventory decisions at one location affect replenishment, working capital, transportation, and customer service across the entire supply chain.
Core Capabilities
Everything you need to optimize inventory at the network level
Harumi helps organizations design inventory policies that improve product availability while reducing inventory investment across the entire supply chain.
Inventory Network Analysis
Gain complete visibility into inventory distribution, demand variability, replenishment flows, and stock positioning across your network.
Dynamic Safety Stock
Calculate inventory buffers that adapt to changing demand patterns, supplier performance, lead times, and target service levels.
Service Level Trade-offs
Understand the relationship between customer service, inventory investment, and working capital before changing inventory policies.
Inventory Policy Management
Deploy consistent replenishment strategies, reorder points, and stock targets across suppliers, plants, warehouses, and distribution centers.
Who benefits
Who benefits most from Multi-Echelon Inventory Optimization?
Designed for organizations that manage inventory across multiple locations, channels, or supply chain stages. Ideal for companies that:
Operate multiple warehouses or distribution centers
Manage complex product portfolios
Need to reduce excess inventory
Want to improve service levels
Face stock imbalances across locations
Need better control over working capital
Decision Workflow
Build smarter inventory policies across your entire network
Harumi helps supply chain teams optimize inventory decisions from analysis to execution while balancing service levels, resilience, and working capital.
Understand
Gain visibility into inventory flows, demand variability, and replenishment across the network.
Optimize
Calculate optimal inventory targets and safety stock for every location.
Compare
Evaluate alternative inventory strategies before changing policies.
Implement
Deploy standardized inventory policies across the supply network.
Improve
Continuously monitor results and refine policies as business conditions evolve.
