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multi-echelon inventory optimization
July 2, 2026

Multi-Echelon Inventory Optimization Explained: How to Cut Inventory Without Cutting Service

When service levels slip, most organizations respond the same way: add more inventory. A little extra safety stock here, a buffer there, and to many businesses, that feels like the safest path forward. But it rarely works. Instead of solving the problem, businesses end up with bloated inventory in one location and stockouts in another. Working capital climbs, service is still inconsistent, and planners are stuck reacting rather than improving outcomes. It’s like trying to fix traffic by adding more cars to the road, and congestion just gets worse. This is the inventory trap: chasing service by piling up stock instead of managing it strategically.   What is Multi-Echelon Inventory Optimization? Multi-Echelon inventory optimization (MEIO) helps you put the right inventory in the right places across your network to hit service goals with less total stock. Instead of optimizing each site in isolation, MEIO looks at your entire network of plants, distribution centers, suppliers, and customers as one connected system.   The three most common inventory issues businesses face At its core, MEIO answers three questions every supply chain leader is asking: Where should we hold inventory? Not every location needs the same level of protection. MEIO determines the most…
May 21, 2021

This Week In Supply Chain Now: May 17th – 21st

It’s been an exciting week here at Supply Chain Now! Get ready to hear all the latest episodes, interviews, conversations, and livestreams from this week right here. On Monday, we released 3 new episodes! In this episode of Supply Chain Now, we introduced the relaunch of our Supply Chain Real Estate series, in partnership with Prologis. Special host Ward Richmond of Colliers International joined our Supply Chain Now host Scott Luton to welcome Melinda McLaughlin and Megan Creecy-Herman of Prologis to the show. On This Week in Business History, Scott Luton shares 9 Things you Didn’t Know About Tina Fey. On Supply Chain Now en Espanol, host Enrique Alvarez welcomed José Luis Silva Vázquez with Dux Capital to hear stories from his childhood and how self-motivation and taking risks have gotten him where he is today. On Tuesday, we released 2 new episodes! On this episode of TEKTOK, Kelly Barner and Enrique Alvarez joined Karin Bursa and Scott Luton to discuss how the industry has bounced back since the pandemic began and how far we’ve come on a few important themes around digital supply chain and procurement. On TECHquila Sunrise, host Greg White continued his conversation with stealthy startup co-founder…