Inventory Optimization for Multisite Distribution

Efficient inventory management is one of the most critical levers in supply chain performance. Our client, a global industrial group, struggled to balance product availability with stock excess across more than 40 distribution points.

The Challenge

Key issues included:

• Lack of visibility across SKUs and sites
• Overstocking leading to high holding costs
• Frequent stockouts of critical items
• Manual planning relying on spreadsheets and outdated heuristics

Our Approach

We designed and implemented an end-to-end solution tailored to their business logic:

• Centralized data platform using PostgreSQL to consolidate demand, inventory, BOMs, and lead times
• Streamlit web application for interactive planning, simulation, and decision-making
• Optimization engine powered by Google OR-Tools and custom business rules
• Dynamic safety stock calculation based on service level targets and demand variability
• Integration-ready APIs for connecting to ERP and supply chain systems

Results and Impact

Within the first 3 months:

• 31% reduction in overstock across low-rotation SKUs
• 27% increase in product availability
• +43% planner efficiency through interactive tooling
• Streamlined transfers and replenishments between sites
• Enhanced visibility and governance via monthly snapshots and audit trails

Key Learnings

• Empowering planners with intuitive tools accelerates adoption
• Transparent decision logic builds trust in AI recommendations
• Simulation features help align decisions with business constraints

Looking Forward

The tool is now being expanded to include cost-based replenishment strategies, auto-scaling based on forecast accuracy, and global rollout across new regions.

Inventory optimization doesn't mean stocking less — it means stocking smart. This platform gave the client the control and visibility they needed to act with confidence.