Inventory Optimization
Multi-Echelon
Multi-Echelon: Excellence on All Levels
Inventory management can be quite challenging for any large organization, even those with fairly simple distribution networks. The complexities of managing inventory increase exponentially in multi-echelon distribution networks, where inventory resides in multiple tiers of locations. (Example: Regional distribution centers serve local warehouses, which in turn supply retail stores.)
As part of its Inventory Optimization suite, Manhattan Associates offers Multi-Echelon to manage complex, multi-tiered supply chains. Multi-Echelon is designed to solve thorny problems that can occur when a distribution network has more than one level of distribution center between the supplier and the end point.
Without Multi-Echelon, your enterprise must manually recognize and resolve conflicts among the echelons involving planning, forecasting, replenishment, service level goals, overstocks and inventory allocations. For example, unexpected replenishment of a Level 2 distribution center may have near-term repercussions on the Level 1 distribution center and ultimately, on all Level 2 centers in the network.
Multi-Echelon excels in managing the industry's most complex distribution networks for manufacturers, wholesalers and retailers. Multi-Echelon effectively overcomes the major pitfalls of using conventional single-echelon systems in multi-level distribution networks.
For example, most replenishment decisions focus on the store level, with nothing taken into account at any distribution center level. Easily integrated with Manhattan Associates' Replenishment, the Multi-Echelon module synchronizes replenishment decisions throughout the enterprise.
For multi-tiered distribution networks, advanced automation of replenishment makes good business sense. Efficiency improvements of just a few percentage points can translate into substantial hard-dollar savings.
How Does Your Current System Stack Up with these Multi-Echelon Capabilities?
- Manages complex, multi-tiered and multi-level supply chains
- Optimizes inventory across all levels of the distribution network
- Reduces inventory at all locations while maximizing customer service levels
- Single solution for both store and all upstream distribution centers
- Responds quickly to changes in customer demand at the end distribution point and synchronizes cascading impacts at upstream levels
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Explore the Inventory Optimization process - click the diagram below for an interactive approach to understanding Manhattan's solution.
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