Inventory Optimization

Inventory optimization is the process of managing inventory volumes effectively to drive financial sustainability and meet customer demand fluctuations.

What Is Inventory Optimization?

Inventory optimization involves two main areas of focus: customer demand and inventory volumes. Brands use inventory management systems to collect critical data on these two areas, enabling them to optimize their inventory based on fluctuations in customer demand. An inventory management system can analyze customer behavior data to identify patterns in seasonal, geographic, or time-based demand, for example. Then, the system can help brand teams make informed decisions on when to replenish stock and when not to. In this way, inventory optimization relies on these insights to help brands avoid stockouts or overstocking.

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