Inventory Optimization

Eliminate excess inventory while maintaining customer service levels

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Solution Sheet

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i2 Inventory Optimization

Maintaining a profitable balance among speed, service levels, and the risk and cost of inventory deployment is the key to maximizing supply chain performance. i2 Inventory Optimization can help you monitor, manage, and optimize inventory strategies—as well as differentiate between key products and the rest of the product line—across even the most complex supply chains.

What problems does it solve?

i2 Inventory Optimization can help you decide what inventory to carry and where, in what form, and how to manage it across procurement, manufacturing, and distribution. By analyzing demand patterns, forecast error, total landed cost, and root causes of inventory performance, you can develop inventory strategies that maximize the profitability and volume of key products.

What are the benefits?

Reduced inventory levels, expedites, and overall logistics costs
Greater customer satisfaction due to higher service level performance
Improved asset utilization and accelerated inventory turns
Improved product availability, along with reduced carrying costs, risks, and cash-to-cash cycles

Why i2?

i2 takes a scientific approach to inventory optimization—analyzing buying behavior, segmentation, postponement, inventory policies, and product lifecycle events and promotions—to develop inventory deployment and replenishment strategies that match true demand. With i2's continuous learning and inventory process improvement model, your inventory strategies are constantly evaluated for maximum effectiveness.

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Success Story

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“We have estimated that we will have a more than 300 percent ROI with Inventory Optimization,” said Ravi Vancheeswaran, manager of systems and processes, ON Semiconductor. By better managing its inventory, ON Semiconductor anticipates greater customer satisfaction because of higher customer service levels.