ENTER THE ERA OF OMNI INVENTORY OPTIMISATION

Because Multi-Echelon is no longer enough

Omni Inventory Optimisation (OIO)

is a first-of-its-kind approach to inventory optimisation that takes full advantage of complete network inventory, channel demand patterns, and omni-fulfilment strategies to align inventory assets across the network and improve total return.
TEST YOUR INSTINCTS
Inventory consumed in an omnichannel enterprise on a real-time basis is driving the need for change that prevailing methodologies can’t address.
TRUE
TRUE
FALSE
FALSE
CORRECT!
Inventory consumed in an omnichannel enterprise on a real-time basis is driving the need for change that prevailing methodologies can’t address. Traditional approaches to inventory optimisation—including multi-echelon—aren’t engineered to master the complexity of connected commerce.
Back
INCORRECT!
Inventory consumed in an omnichannel enterprise on a real-time basis is driving the need for change that prevailing methodologies can’t address. Traditional approaches to inventory optimisation—including multi-echelon—aren’t engineered to master the complexity of connected commerce.
Back
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In the early days, buyers ordered inventory based on their best guess of upcoming demand at a single location. This approach often resulted in the ‘bullwhip effect’, where forecasts distorted—and orders inflated—as they moved up the supply chain. Managing inventory from the bottom up became increasingly costly and ineffective as retail organisations grew.
THEN
THEN
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In the 2000s, as the retail environment became more complex, the multi-echelon methodology took hold. Replacing traditional systems, multi-echelon solutions enabled a bi-directional, network approach to inventory optimisation that continually updates stock at every level in the supply chain, bringing transparency to the process.
THEN
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The next generation of inventory optimisation is omnichannel, advancing multi-echelon concepts to fully embrace digital commerce and changing consumer fulfilment preferences. Omnichannel recognises that inventory is consumed differently today, making it possible for retailers to better compete in the new era.

“Retailers are constantly facing a balancing act within their supply chain. The days of the store-only channel are gone, so retailers need a clear vision throughout their supply chain to cope with the multiple methods and combinations of ways consumers shop—all while building customer loyalty.”

 

TOM ENRIGHT

VICE PRESIDENT, GARTNER

 

“Retailers continue to strive towards being more accurate at demand forecasting, yet in doing so, they’re just trying to forecast as to how consumers pay and through which channel. This approach to demand forecasting provides little insight into where inventory needs to be to fulfil orders, and the majority of retailers simply can’t forecast in any great detail as to how consumers wish to have their orders fulfiled.”

 

TOM ENRIGHT

VICE PRESIDENT, GARTNER

“Forecasting demand for products and positioning inventory has never been a simple task for retailers, but it has become increasingly difficult in the digital age when shoppers’ purchasing behavior has become varied and unpredictable.”

 

COMPUTER WEEKLY.COM

“Retailers continue to strive towards being more accurate at demand forecasting, yet in doing so, they’re just trying to forecast as to how consumers pay and through which channel. This approach to demand forecasting provides little insight into where inventory needs to be to fulfill orders, and the majority of retailers simply can’t forecast in any great detail as to how consumers wish to have their orders fulfilled.”

 

TOM ENRIGHT

VICE PRESIDENT, GARTNER

“Forecasting demand for products and positioning inventory has never been a simple task for retailers, but it has become increasingly difficult in the digital age when shoppers’ purchasing behavior has become varied and unpredictable.”

 

COMPUTER WEEKLY.COM

“Retailers are constantly facing a balancing act within their supply chain. The days of the store-only channel are gone, so retailers need a clear vision throughout their supply chain to cope with the multiple methods and combinations of ways consumers shop—all while building customer loyalty.”

 

TOM ENRIGHT

VICE PRESIDENT, GARTNER

“Forecasting demand for products and positioning inventory has never been a simple task for retailers, but it has become increasingly difficult in the digital age when shoppers’ purchasing behavior has become varied and unpredictable.”

 

COMPUTER WEEKLY.COM

 

“Retailers are constantly facing a balancing act within their supply chain. The days of the store-only channel are gone, so retailers need a clear vision throughout their supply chain to cope with the multiple methods and combinations of ways consumers shop—all while building customer loyalty.”

 

TOM ENRIGHT

VICE PRESIDENT, GARTNER

“Retailers continue to strive towards being more accurate at demand forecasting, yet in doing so, they’re just trying to forecast as to how consumers pay and through which channel. This approach to demand forecasting provides little insight into where inventory needs to be to fulfill orders, and the majority of retailers simply can’t forecast in any great detail as to how consumers wish to have their orders fulfilled.”

 

TOM ENRIGHT

VICE PRESIDENT, GARTNER

DISRUPTION … FOR ALL THE RIGHT REASONS

Industry change represents opportunity or adversity, depending on your perspective. Retailers that embrace the digital era and succeed will reap benefit, growing their digital sales and store traffic by offering unique fulfilment experiences, cost-effectively.

Each fulfilment experience impacts demand and supply

Meeting the need for customers who want to buy-online-pickup-from-store, for example (see below, emerging fulfilment strategies), is important. Doing so in a way that keeps supply and demand in balance—and doesn’t add cost—is imperative. Given the complexities of a transaction where the point of demand is different than the point of fulfilment requires a solution designed from the ground up and engineered for omnichannel, for the way consumers shop and buy today.

The advent of omnichannel inventory

The new era gives retailers new ways to take advantage of available inventory. Now inventory can be leveraged and sold in ways not anticipated when purchased. With the right tools, it doesn’t matter where inventory resides. Machine learning monitors the network at every level, helping to better align inventory levels and lower costs. With Omni Inventory Optimisation, the analytics are built in, giving retailers a scientific starting point to meet the needs of the new consumer (fulfilment experiences) and the needs of the business (profit).

Modern day fulfilment strategies

  • Buy-online-pickup-in-store
  • Reserve-online-buy-in-store
  • Buy-online-return-in-store
  • Buy-in-store-return-online
  • Buy-online-pickup-curbside
  • Buy-online-deliver-same-day/next-day
  • Buy-in-store-deliver-same-day/next-day

What does OIO do that other approaches don’t?

Whether you’re supporting a walk-in purchase, click-and-collect, or both, your inventory is precisely and proactively placed exactly where your customers expect it to be.

Key Capabilities of OIO

Click the link below to view the rest of the white paper and learn more about OIO.

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