Multi-Enterprise Inventory Optimization
Inventory Strategies that Reflect Current Realities
A healthy inventory allows companies to grow revenues by meeting service levels while minimizing inventory investments, freeing cash flow and incurring low waste. The importance of striking a healthy balance becomes especially relevant in today’s volatile markets, where varying input costs and changes in consumer demand continually challenge manufacturers and retailers. For multinationals with global supply chains and large numbers of SKUs, this is a computationally intense challenge, which until recently, had only been partially solved.
Filling this need is Terra’s Multi-Enterprise Inventory Optimization (MIO), a next generation solution that uses better math and daily granularity to overcome the limitations of traditional inventory optimization tools. The results are superior inventory targets which reflect real-world market conditions, even in volatile markets.
Key Features
- Simultaneously solves minimum inventory levels across all echelons of the value chain, including plant, distribution centers and retailer locations
- Addresses all classes of inventory including, finished goods, raw material and work in progress
- Solves maximum levels in order to avoid waste that eats into margins and impact sustainability goals
Financial Benefits
- Reduces working capital requirements and frees up cash flow
- Shortens the cash conversion cycle
- Increases growth through better service levels and on-shelf availability
- Boosts earnings by controlling waste of short shelf life items
The results speak for themselves. Unilever standardized on MIO globally, replaced a legacy inventory optimization and in the process saved 5 days of inventory. Read more to learn how MIO can help you reduce inventory while maintaining service.
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