Back to AMSWA
Recent Industry Research Explores Increased Benefits of Multi-Echelon Inventory Optimization

The latest industry research reveals the goal of today’s supply chain professional must be to find the balance between service and investment. According to the report, “Inventory Optimization – Impact of a Multi-Echelon Approach,” published by Aberdeen Group and authored by Bryan Ball, vice president and principal analyst, supply chain management, companies which utilize multi-echelon inventory optimization (MEIO) have a more comprehensive understanding and view of inventory. The study, sponsored by Logility, notes these companies are twice as capable of meeting the challenge to balance cost and service levels across their network.

Key Findings

  • Leading driver for inventory optimization adoption is the need to reduce inventory carrying costs
  • Multi-echelon inventory optimization users are twice as likely to adopt advanced supply chain capabilities such as inventory segmentation, replenishment and event management than non-multi-echelon users
  • Multi-echelon users saw a 28% increase in inventory turns versus their non-multi-echelon counterparts
  • Multi-echelon users are twice as likely to tie target-setting to the S&OP process

Notable Quotes

“Inventory optimization is a matter of right sizing inventory investment for a given service target,” said Bryan Ball, vice president and principal analyst, supply chain management, Aberdeen Group. “For multi-echelon users, the performance improvement over non-multi-echelon users is significant with vast improvements in inventory turns, cash-to-cash cycle and perfect order improvement. As supply chains become more complex, the need to address end-to-end challenges effectively through the use of multi-echelon solutions will become a necessity, not an option.”

“From 2008 through 2010 companies slashed inventories to immediately remove costs without an understanding of the impact these measures would have on customer service, future investments and revenue,” said Mike Edenfield, president and CEO, Logility. “This Aberdeen Group report clearly shows how companies which utilize a multi-echelon inventory optimization solution, such as Logility Voyager Inventory Optimization™, are better able improve cash flow, reduce working capital and increase customer service.”

Additional Information

The report also features interviews with two Logility customers; Stanley Black & Decker and a global chemical company. Both of these companies rely on Logility Voyager Inventory Optimization to find the right balance between inventory investment and service goals with impressive tangible results across their global supply chain networks.


Download your complimentary copy of this report at:

Logility Voyager Solutions:

Inventory Optimization on The Voyager Blog:

About Logility

With more than 1,250 customers worldwide, Logility is a leading provider of collaborative, best-of-breed supply chain solutions that help small, medium, large and Fortune 1000 companies realize substantial bottom-line results in record time. Logility Voyager Solutions is a complete supply chain management solution that features a performance monitoring architecture and provides supply chain visibility; demand, inventory and replenishment planning; Sales and Operations Planning (S&OP); supply and inventory optimization; manufacturing planning and scheduling; transportation planning and management; and warehouse management. Logility customers include McCain Foods, Sigma-Aldrich, and VF Corporation. Logility is a wholly owned subsidiary of American Software, Inc. (NASDAQ: AMSWA). For more information about Logility, call 1-800-762-5207 USA or visit

Forward-Looking Statements

This press release contains forward-looking statements that are subject to substantial risks and uncertainties. There are a number of factors that could cause actual results to differ materially from those anticipated by statements made herein. These factors include, but are not limited to, continuing U.S. and global economic uncertainty, the timing and degree of business recovery, unpredictability and the irregular pattern of future revenues, dependence on particular market segments or customers, competitive pressures, delays, product liability and warranty claims and other risks associated with new product development, undetected software errors, market acceptance of Logility’s products, technological complexity, the challenges and risks associated with integration of acquired product lines, companies and services, as well as a number of other risk factors that could affect the Company’s future performance. For further information about risks the Company and American Software could experience as well as other information, please refer to American Software, Inc’s. Form 10-K for the year ended April 30, 2011 and other reports and documents subsequently filed with the Securities and Exchange Commission. For more information, contact: Vincent C. Klinges, Chief Financial Officer, American Software, Inc., (404) 264-5477 or fax: (404) 237-8868.

Logility is a registered trademark and Logility Voyager Solutions is a trademark of Logility, Inc. Other products mentioned in this document are registered, trademarked or service marked by their respective owners.

(c) 2015 Business Wire, Inc., All rights reserved. All of the news releases and other content contained herein are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire's members, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. Any copying or reproduction (other than for an individual user's personal reference), redistribution, reposting or other transmission or communication is expressly prohibited without prior written permission of Business Wire, Inc
Back to AMSWA
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki