Hype Cycle for Analytic Applications, 2011

Gartner, Inc.

Analysts: Gareth Herschel
Reference ID: G00215708
August 30, 2011

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“Inventory strategy optimization (ISO), also known as multiechelon inventory optimization (MEIO), is an analytic application that helps users optimize their supply chain response strategies across a multiechelon supply chain. ISO is slowly evolving to help users look beyond just inventory to include all facets of the supply chain (sourcing, pooling, replenishment strategies and demand priorities, for instance) in order to support the development of segmented supply chain response strategies (such as plan inventory levels, sourcing points, postponement, routing rules and push-pull decoupling points) for customer and channel segmentation. ISO technology is beginning to integrate with and even encompass supply chain network design constraints and tools at one end and operational supply chain planning (SCP) constraints and tools at the other.

"For complex, distribution-intensive industries like consumer products, retail, aerospace and defense, utilities or telecom, use these and classic SCP tools to extract the greatest value from inventory and supply chain assets.

“ISO solutions enable enterprises to use supply chain assets — people, equipment, inventory, money, suppliers, routes, locations and promises — more effectively, while at the same time realigning or segmenting their use across multiple customer and channel segments.”

Learn how Multi-Enterprise Inventory Optimization can reduce safety stock up to 20 percent.