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Inventory Optimization

AI-Driven Inventory Optimization Software for Enterprises

Set dynamic inventory targets across complex, multi-echelon networks with AI-assisted planning that accounts for demand and supply variability, service goals, costs, and constraints. o9 Inventory Optimization solution helps teams position inventory with greater precision, evaluate financial trade-offs, and connect inventory policy to replenishment decisions.

Amorepacific Corporation
Acuity Brands, Inc.
Pepperl+Fuchs
Kubota
M. Dias Branco
DS Group
Gordon Food Service
PepsiCo
Keurig Dr Pepper
Coty
TVS Motor Company
Novelis
Amorepacific Corporation
Acuity Brands, Inc.
Pepperl+Fuchs
Kubota
M. Dias Branco
DS Group
Gordon Food Service
PepsiCo
Keurig Dr Pepper
Coty
TVS Motor Company
Novelis
Amorepacific Corporation
Acuity Brands, Inc.
Pepperl+Fuchs
Kubota
M. Dias Branco
DS Group
Gordon Food Service
PepsiCo
Keurig Dr Pepper
Coty
TVS Motor Company
Novelis

UNLOCKING BILLIONS IN VALUE FOR CLIENTS IN 30+ INDUSTRIES

O9 whitepaper ibm mockup
white paper

Why retailers need to digitally transform their inventory management

What is Inventory Optimization?

Definition

Inventory Optimization is the business discipline of setting inventory targets and policies to balance service, cost, and working capital across a supply network. It covers service-level targets, stock positioning, safety stock and replenishment policies, and decisions that account for demand, supply, and lead-time variability.

On a connected, AI-driven planning model, inventory planning shifts from static, siloed decisions to dynamic network-wide trade-offs. Multi-echelon inventory optimization (MEIO) helps teams balance service and cost across locations, improving working capital productivity and decision quality as demand and supply change.

Cost of Getting Inventory Optimization Wrong

Business challenges

Excess Inventory and Trapped Working Capital

Static buffers can leave capital tied up in excess inventory while priority products remain understocked. The network carries cost without reliably protecting service.

Stock-Outs and Missed Service Targets

Planning inventory location by location can create shortages in one node and excess in another. Without network-wide targets, local decisions can increase service risk elsewhere.

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Reactive Planning and Expediting Costs

When inventory policies do not adjust to demand, supply, lead-time, and constraint changes, planners rely more on manual overrides, transfers, and expedites.

What Results Do Companies Achieve with o9 Solutions?

Food & Beverage

  • Maintained accurate, real-time inventory visibility, using data-driven forecasting to predict demand.

    60%Reduction in Stock-Outs

  • By rolling out demand planning, supply network planning, multi-echelon inventory optimisation and reverse logistics capabilities.

    +53%Decrease in Inventory Losses

  • Touchless planning - the ability of systems to generate plans that require minimal human intervention.

    70-90%Touchless Planning Adoption

  • Forecast accuracy improved by more than 11 percentage points to 87%, and service levels have reached 99.5%.

    +11%Forecast Accuracy
why o9's [SOLUTION PLACEHOLDER]

What makes o9 the Best [SOLUTION PLACEHOLDER] Software

Industry standard
With o9
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Why Planners Choose o9

  • Improve Service Levels

    Optimize inventory targets across multiple echelons to improve product availability, protect service levels, and reduce stockout risk without relying on broad inventory buffers.

  • Reduce Excess Inventory

    Use dynamic safety stock and reorder recommendations to reduce surplus inventory and working capital tied up in the wrong products, locations, or time periods.

  • Increase Inventory Productivity

    Position inventory more effectively across the network to improve inventory turns, reduce surplus, and make more productive use of working capital.

  • Boost Planner Productivity

    Automate routine planning and use exception-based workflows to reduce manual effort, helping planners focus on higher-impact decisions and material risks.

  • Improve Replenishment Efficiency

    Use automated, demand-driven replenishment plans that account for constraints such as shelf life and capacity to improve responsiveness and reduce manual intervention.

  • Strengthen Cross-Functional Alignment

    Connect demand, inventory, supply, and financial planning in one environment to improve coordination and support more consistent decisions across functions.

CORE CAPABILITIES

What o9 Inventory Optimization
Enables

Optimize Inventory Across Echelons

Set time-phased safety stock, reorder points, and inventory targets across the network while accounting for how decisions at one node affect upstream and downstream locations.

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One Operating Model
That Connects It All

apex operating model

APEX is the continuous intelligence loop that connects o9’s AI capabilities — and assortment decisions — to the rest of your enterprise in real time. Gen AI is the planner’s interface into the APEX loop.

  • Sense

    AI detects demand shifts sell-though signals, and cluster drift as they happen.

  • Decide

    Gen AI presents assortment options with tradeoffs where planners decide with full context.

  • Connect

    Assortment decisions flow automatically to MFP, OTB, and Supply chain.

  • Improve

    Every outcome — sell-though, markdown, substitution — feeds back into AI models for next season.

Managing Inventory in a Retail Omnichannel Ecosystem

Testimonials

What Leaders
Say About o9

Amway

"With o9 AI/ML-based forecasting in place, we’re already seeing improved forecast accuracy, stronger cross-functional collaboration, and faster, more informed decision-making—all within a centralized platform."

Gaby Gutierrez

VP of Global Supply Chain Planning

TB International

"We see the first results really in being by far quicker to see things like access inventory. What is really the biggest one without trying to crunch numbers very hard? An access spreadsheet, you directly simply open the report."

Anne Molitor

Senior Supply Chain Manager

"We made the conscious decision with o9 to bring a quicker ROI by integrating with our legacy SAP. [...] When the full ERP transformation happens, we’re ahead of the game."

PepsiCo

"So with IBP, what we are achieving now is one single source of truth. Everyone aligns behind one number, with the ultimate accountability for IBP being the general manager. So you take the power out of the functions and give it to the general manager to run the business as they see fit, which is unbelievable."

Dr. Athina Kanioura

Chief Strategy and Transformation Officer

Asian Paints

"The decisions taken by the logistics team are already processed by the engine, a priori. They validate it, it feeds into our execution engine for track-building and shipments. The workbench allows our team to move the same-day order fill rate. Last month we actually achieved a 98.5% OFR."

Harish Lade

SVP, Supply Chain

Samsung SDS

"We reduced planning lead time by 20%, and we minimized the manual planning adjustment up to 40%, and we reduced the resolution time for a minor report or UI adjustments or adding a new report or a customer request, by 70%, which is a phenomenal performance."

Hae-Goo Song Song

Executive Vice President

Analyst Validation

o9 Independently Recognized by Gartner and Nucleus Research

  • o9 recognized as a 2025 Leader in Nucleus Research®’s SCP Value Matrix Critical Capabilities for Supply Chain Planning Solutions

    Learn more

  • o9 Solutions Recognized in Three New 2026 Gartner® Magic Quadrant™ reports for Supply Chain Planning [Process and Discrete] and Decision Intelligence Platforms

    Learn more

  • o9 Recognized as the only “Customers’ Choice” Provider in the 2025 Gartner® Peer Insights™

    Learn more
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Experience the Power
of o9 First-Hand

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Take a Tour

See how the o9 Enterprise Brain, powered by Neurosymbolic AI, connects enterprise knowledge with AI reasoning to support demand planning and faster, coordinated action.

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Live Demo with an o9 Expert

Get a personalized walkthrough with an o9 solution specialist and see how to drive faster, smarter planning decisions across your enterprise.

resources

Inventory Optimization Resources: Guides, Reports, and Case Studies

FAQ

o9 Inventory Optimization uses Multi-Echelon Inventory Optimization, or MEIO, to generate time-phased inventory targets across a multi-node supply network. It supports safety stock, reorder points, reorder quantities, service-level policies, variability modeling, and constraints within a connected planning process.

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