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How often should businesses reassess their inventory optimization strategies in the face of demand volatility?

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Answer:

In volatile markets, reassessment should be continuous. Inventory and replenishment strategies must adapt as demand patterns, lead times, and risks evolve, rather than relying on annual or quarterly reviews. Fixed review cycles assume the underlying environment changes slowly, which is no longer a safe assumption in most Supply Chains. Modern planning platforms recompute key parameters as new data arrives, so safety stock, reorder points and service level targets stay aligned with current conditions. Planner time then concentrates on the exceptions surfaced by the system, rather than on rerunning the same broad reassessment every few months and discovering that conditions have already shifted again.

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