What is MEIO?
MEIO means Multi-Echelon Inventory Optimization and is the ability to perform inventory planning, inventory optimization, and scenario analysis across the entire supply chain.
Traditional inventory optimization optimizes each node in the supply chain independently, whereas MEIO optimizes across all nodes and tiers concurrently. Organizations managing a complex, global and decentralized supply chain with a large number of products require MEIO to determine optimal safety stock and inventory levels at the right locations to optimize service levels for a given level of investment.
Enterprise Resource Planning (ERP) systems are typically unable to optimize inventory across all echelons as they are often siloed, using stale data and lacking advanced optimization capabilities.
MEIO provides a scalable solution that can identify and maintain desired service levels with optimal inventory levels and investments based on constantly fluctuating demand. Optimization requires continuous balancing of supply and demand – across the entire supply chain network.
One Network’s Perspective on Multi-Echelon Inventory Optimization
In contrast to ERP solutions, multi-party networks are designed to solve multi-party, multi-echelon problems, including the challenge of optimizing inventory optimization across a complex network of trading partners. One Network’s NEO Platform provides end-to-end visibility, planning, and optimization capabilities, including a robust Multi-Echelon Inventory Optimization (MEIO) solution. ONE enables companies to constantly and automatically rebalance inventory in near real time across multiple tiers. This has enormous benefits, including lowering inventory costs, freeing capital, improving customer service levels, improving supply chain network performance, responsiveness, resiliency, and financial health.