THE BOTTOM LINE
Vendors of multi-echelon inventory optimization will be challenged in the years ahead to make “real demand” the basis for the calculations in their engines. One pioneer in building demand-driven supply chains is One Network Enterprises. Its network-wide platform uses demand signals (point-of-sales information) to establish a pull rather than push process for inventory throughout the supply chain. While it requires more from partners, potential benefits in changing inventory carrying costs and working capital are significant.