Current demand for the product
The system evaluates the current demand for goods at each store, which is replenished through the distribution centre.
Multi-Echelon Inventory Optimization (MEIO) Software
Multi-echelon inventory allocation
LEAFIO AI Multi-Echelon Inventory Optimization Software (MEIO) takes into account the unique characteristics of goods supply and generates highly accurate safety stock forecasts for managing inventory in both regional and central warehouses.
LEAFIO AI Multi-echelon Inventory Optimization Software (MEIO): How It Works
The LEAFIO AI multi-echelon inventory optimization (MEIO) software was designed to manage inventory at all levels of the supply chain: from a retail store, pharmacy, or supermarket to the chain of regional and central warehouses. Due to the tight connection in the elaborate multi-echelon forecasting algorithm, it is possible to accurately assess the current and future demand for goods on the lead time of an external supplier to the central warehouse concerning the supply schedule of a product to stores.
Multi-echelon inventory optimization software takes into account all the business parameters and effective order peculiarities
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Forecast demand for the product
Estimation of the forecast demand for goods is made for each store, which is replenished through the DC. The following is taken into account: the number of deliveries of goods by an external supplier to each store based on the DC delivery schedule, seasonality, promotional activities and other factors.
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The total demand for goods across the retail chain
The current demand for the product at each level and the forecast demand taking into account seasonality, promotional activities and other factors, results in total demand for the product across the chain.
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Forecast demand for warehouse needs
Calculation at the warehouse level occurs whether they are intermediate or wholesaler. In this case, the forecast demand is estimated to meet the needs of the warehouse(s) on the supply leg, taking into account all the necessary factors.
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The order optimization taking into account the supplier's conditions
There is a general aggregation, order optimization, if it is necessary based on the supplier's conditions, the order is rounded up to the multiplicity factor.
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Checking the order correctness
A final check of the order correctness so as not to miss anything.
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Auto-sending order to a supplier
The order is generated and sent to the supplier automatically or accepted by the manager, depending on the settings selected for a particular supplier.
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General demand for the product
The total demand of stores for the product on the delivery lead time is estimated.
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Order multiplicity factor
In case of pick by line and pick by zero schemes, when the supplier's packaging can be unpacked at the warehouse and divided into smaller lots based on the lower distribution of goods from the DC to stores, the system can evaluate the order quantity and make a decision on the order based on the needs of stores in units of measurement of the DC multiplicity.
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The order optimization taking into account the supplier's conditions
There is a general aggregation, order optimization, if it is necessary based on the supplier's conditions, the order is rounded up to the multiplicity factor.
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Checking the order correctness
A final check of the order correctness so as not to miss anything.
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Auto-sending order to a supplier
The order is generated and sent to the supplier automatically or accepted by the manager, depending on the settings selected for a particular supplier.
Benefits of LEAFIO AI Multi-Echelon Inventory Optimization
Multi-echelon inventory replenishment software provides numerous advantages for retailers with complex supply chain network, enabling more efficient stock management and greater responsiveness to market fluctuations.
Optimized inventory levels across multiple locations
The software ensures optimal inventory distribution across all echelons, improving overall supply chain efficiency. By optimizing inventory levels, retailers can avoid both excess stock and shortages, enhancing stock availability at all times.
Improved customer service levels
The software enhances customer satisfaction by ensuring products are always available to meet demand. By managing demand volatility more effectively, retailers can maintain high service levels, even during peak times.
Balanced inventory buffers for demand fluctuations
The software enables retailers to create balanced inventory buffers, safeguarding against unexpected demand spikes or supply chain disruptions. This ensures uninterrupted sales and optimized inventory targets throughout the network.
Increased supply chain performance
LEAFIO's MEIO software improves supply chain performance by automating inventory planning and supply chain segments across the entire distribution network. This leads to better alignment between consumer demand and stock availability, boosting operational efficiency.
Simplified management of multiple echelons
LEAFIO helps retailers seamlessly manage stock across multiple echelons in their supply chain, from central warehouses to regional distribution centers and stores, improving the flow of goods and reducing the risk of excess inventory.
Reduced carrying costs
With LEAFIO's advanced demand forecasting accuracy, retailers can lower carrying costs by maintaining appropriate safety stock levels. This reduces the need for holding excessive stock at multiple echelons of the supply chain, freeing up valuable resources.
LEAFIO AI multi-echelon inventory optimization (MEIO) software advantages
up to 20%
Potential inventory reduction at DC with increased availability in stores
up to 30%
Improvement of turnover in the entire chain
up to 30%
Reducing of excess inventory at DCs
15
Decrease in storage expenses due to stock reduction
Multi-echelon inventory optimization software trusted by retailers the world over
Case studies
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