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

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

In most cases, results include 20% to 40% reduction in inventory, improved product availability, and fewer stockouts — without increasing operational risk.

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.

For example, organizations like Danone, La Redoute, and Plum Living achieved substantial inventory reductions while improving operational performance using Flowlity.