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What results can companies expect from multi-echelon inventory optimization — and can it reduce inventory without increasing risk?

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Answer:

Companies typically achieve significant improvements in both inventory efficiency and service levels.

This is possible because multi-echelon inventory optimization does not simply reduce stock. It redistributes inventory more intelligently across the Supply Chain, placing it where it absorbs variability most effectively instead of duplicating safety stock everywhere.

As a result, companies can reduce excess inventory while maintaining — or even improving — service levels, without increasing operational risk.

For example, Plum Living reduced inventory value by 38%, including a 21% drop at go-live, by rebalancing stock across its warehouse network. Saint-Gobain Sekurit lifted service level from 95.8% to 97.2% while cutting inventory by 9.25% across 10,000+ references, 30 distribution centres and 3 plants. Groupe Lemoine lifted service level by 5 points across its multi-site Supply Chain, with availability now sitting above 98%.

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