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What is Echelon Inventory?

Echelon inventory or multi-echelon inventory is defined as the inventory level between any particular stage in the supply chain and the final customer. Effective Multi-echelon inventory optimization is crucial for smooth supply chain performance as maintaining optimal levels of stock at the right location at the right time helps in meeting supply chain demands efficiently. Multi-echelon inventory optimization enables to keep the right levels of stock in accordance with multi-echelon planning throughout the supply chain distribution networks.

Adopting a strategic and mathematical approach to calculating the right levels of inventory at each stage in the supply chain can help in solving the real-world challenges in inventory optimization.

Advantages of multi-echelon inventory optimization

  • Helps in keeping the right levels of inventory across multiple distribution centers
  • Improves dispatch scheduling and inventory planning
  • Enables well-informed supply chain decision-making
  • Reduces inventory handling and storage costs
  • Keeps customers satisfied by ensuring on time fulfillment of orders

How Locus helps businesses with dynamic route planning

Multi-echelon inventory optimization consulting | Network optimization | Supply chain consulting | Supply chain network optimization | Analytics and insights

Related Resources

Multi-Echelon Supply Chain Inventory Optimization – A mathematical perspective
Multi-Echelon Supply Chain Inventory Optimization – A mathematical perspective
Captive vs Outsourced Fleet: Math behind Transportation and Distribution
Captive vs Outsourced Fleet: Math behind Transportation and Distribution
Cost to Serve Analysis – The Holy Grail of Sustainability
Cost to Serve Analysis – The Holy Grail of Sustainability
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Schedule a meeting with Locus

How can Locus help manage your logistics?

  • Locus’ proprietary geocoding engine converts the fuzziest of the addresses into precise geographical coordinates thereby helping your on-ground executives locate addresses easily.
  • Digitize all your operational variables such as fleets, delivery persons etc. to come up with the best route plan every day.
  • Track your orders in real-time with the Locus Live Dashboard. Locus’ last-mile delivery app Locus On The Road (LOTR) helps delivery partners process orders.
  • Visualize and tweak your scheduled plans via three key metrics— geography, time, & vehicle (fleet)—with a birds-eye view of your entire operations.
  • Build your own reports and analyze important parameters that you need to make key decisions.

Join Industry Leaders:

43m+ miles

Reduction in distance traveled

18m+ tons

Reduction in GHG emissions

$200 m

Savings in logistics costs
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