Gartner Research

Don't Invest in Multiechelon Inventory Optimization Until You're Ready

Published: 28 April 2015

ID: G00273529

Analyst(s): Marko Pukkila

Summary

Many complex global companies struggle to optimize their inventory investment. They are often tempted to fix the situation with MEIO tools before their supply chain capabilities are ready. This research helps supply chain leaders understand what is required before heading down the MEIO path.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Identify the Demand Segments in Your Supply Chain and Focus on Inventories That Are Suboptimized
  • Create a Clearly Defined Supply Strategy for the Different Segments
  • Align Objectives With Market Service Expectations and the Overall End-to-End Supply Chain Performance to Better Leverage Inventories Across the Network
  • Implement a Supply Chain Planning System of Record to Achieve Enterprise Internal Operating Visibility in Support of Future MEIO Analytics Capability

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