Inventory Optimization.

Westernacher Consulting applies scientific inventory optimization methods to achieve 15–30% inventory reduction while maintaining or improving service levels. Westernacher implements multi-echelon inventory optimization, statistical safety stock calculation, and segmentation-based stocking strategies across the supply chain network, accounting for demand uncertainty, supply variability, and differentiated service level targets to minimize working capital while ensuring product availability.

Inventory Optimization Expertise:

  • Multi-Echelon Inventory Optimization (MEIO): Optimize inventory across entire network, not just individual locations
  • Safety Stock Calculation: Scientific calculation considering demand and lead time variability
  • Service Level Optimization: Balance inventory investment with target service level objectives
  • Segmentation-Based Strategies: Differentiated inventory policies based on product characteristics
  • Slow-Moving & Obsolete Management: Proactive identification and management of excess inventory
  • Working Capital Optimization: Reduce inventory investment while maintaining or improving service

Inventory Optimization Capabilities:

  • Single and Multi-Echelon Inventory Optimization (MEIO) through IBP for Inventory
  • ABC/XYZ Segmentation for products
  • Forecast Error Analysis
  • What-if scenario analysis for evaluating planning alternatives

Typical Results:

  • 5-30% inventory reduction with maintained or improved service level
  • Improved inventory turns and working capital efficiency
  • Reduced stock-outs and expediting costs
  • Lower obsolescence and inventory write-offs
We strongly believe in the outcome that a structured approach to inventory optimization together with the right level of enablement can bring to your organization.
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