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.
How Harumi helps
Is your inventory network facing any of these challenges?
Multi-Echelon Inventory Optimization helps organizations define smarter inventory policies across multiple locations, considering demand variability, lead times, service targets, and network constraints.
Inventory is unevenly distributed
Some locations hold excess stock while others face shortages, reducing service levels and increasing operational costs.
Safety stock levels are not optimized
Inventory buffers are often defined manually or inconsistently, leading to too much stock in some areas and too little in others.
Service levels are difficult to maintain
Companies struggle to meet customer expectations while keeping inventory investment under control.
Network decisions lack visibility
Teams lack a clear view of how inventory policies across locations affect cost, availability, and supply chain performance.
Capabilities
The pillars of multi-echelon inventory optimization
Balance service levels and working capital across your entire inventory network.
Network Inventory Assessment
Evaluate inventory levels, stock distribution, demand patterns, and service performance across plants, warehouses, and distribution centers.
Safety Stock Optimization
Define optimal safety stock levels based on demand variability, supply uncertainty, lead times, and target service levels.
Service Level Modeling
Understand the inventory investment required to achieve different service level targets across products, locations, and customer segments.
Inventory Policy Optimization
Set more effective replenishment parameters, stock targets, and inventory rules across the supply network.
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
Jorney
The decision journey supported by Harumi
Transform inventory complexity into smarter network decisions.
Plan
Establish inventory targets, service level goals, and network assumptions across locations and product groups.
Prioritize
Identify the products, locations, and inventory policies with the greatest impact on service levels and working capital.
Schedule
Align replenishment and inventory positioning decisions with network requirements and operational constraints.
Measure
Track inventory levels, availability, service performance, turnover, and working capital impact across the network.
Simulate
Evaluate alternative inventory policies, service targets, and network strategies before implementing changes.
