Liliana Sanchez

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…

The logistics and transport sector contributes about 24% of global CO2 emissions. Considering the push for supply chain sustainability across different sectors, the need for lower emissions has been heating up in recent years. With roughly a quarter of the world’s emissions tied to logistics, this industry will possibly be the final frontier to tackle regarding sustainability. While different strategies can be leveraged to reduce the impact of logistics operations on the environment, integrating eco-friendly practices and reducing Scope 3 emissions are some of the most pressing initiatives at hand. This article serves as a guide that will provide actionable steps for companies to embrace innovative solutions and navigate the transition toward a greener future. Scope 3: Understanding Supply Chain Emissions Modern supply chain management outsources different parts of the operation to leverage the expertise of different suppliers and stakeholders. Logistics operations are usually outsourced to third-party providers, and exercising control over their operations and monitoring their sustainability practices and emissions can be challenging. Here’s the harsh reality: no matter how well an organization manages to reduce Scope 1 and 2 emissions, the unaddressed Scope 3 emissions can bring the entire process to a screeching halt. This is especially true…