Resources Archive - Page 2 of 18

In Part 1, we uncovered a €23 billion inventory challenge holding Nordic companies back. In Part 2, we explored how smarter inventory strategies can help turn that waste into wins. But short-term gains aren’t enough. The real question is: How do you make those wins last? That’s where sustainability and resilience come into play — not as buzzwords, but as must-haves for any supply chain that wants to survive and thrive in a fast-changing world.

Why are sustainability and resilience the future of supply chains?

Sustainability is no longer optional. Regulations are getting stricter, consumers are demanding more transparency, and investors are looking for climate accountability.

Meanwhile, businesses are facing geopolitical uncertainty, inflation, and raw material volatility — all of which threaten supply chain stability.

The companies that will lead in the coming decade are the ones who treat inventory as a strategic lever — not just for efficiency, but for climate action, risk mitigation, and long-term growth.

How does optimized inventory drive sustainability and resilience?

A streamlined, data-driven inventory strategy doesn’t just make your operations more efficient — it sets the stage for meaningful change across your entire supply chain.

It allows you to cut emissions by reducing overproduction, unnecessary storage, and transportation waste. At the same time, it frees up capital that can be reinvested in renewable materials, green technologies, and more sustainable logistics.

You also gain greater flexibility to respond to disruptions without relying on oversized safety stock. And by planning ahead and aligning your goals with key partners, you’ll be in a stronger position to build supplier relationships rooted in shared sustainability and ESG (Environmental, Social, and Governance) priorities.

The potential scale of impact? It’s enormous:

€23 billion could be unlocked across Nordic companies — ready to reinvest in innovation, sustainability, and growth.
Up to 390,000 new jobs could be created across the region.
Carbon emissions could be significantly lowered by optimizing production, distribution, and storage practices.

Efficient inventory management isn’t just an operational win — it’s a climate win, an economic win – and a strategic must.

Inventory management insights from supply chain experts

As Nathalie Johansson, Senior Supply Chain Specialist at Optilon, puts it:

“Efficient inventory management isn’t just an operational tweak – it’s a strategic necessity. Companies that optimize their supply chains gain a competitive edge, enhance profitability, and contribute to a more sustainable future.”

Franz Rothschild, Senior Supply Chain & Sustainability Specialist, adds:

“Companies that integrate sustainability into inventory management gain a competitive edge. A leaner supply chain is not just cost-effective — it’s a business imperative for long-term resilience.”

Together, their message is clear: sustainability and resilience aren’t competing priorities — they’re two sides of the same coin.

Future-proofing your supply chain starts now

Inventory optimization isn’t just a financial decision – it’s a sustainability strategy too.

Every unsold product represents wasted resources: materials, energy, transportation, storage space, and eventually, disposal costs. Not to mention the environmental impact.

As customer expectations rise and regulations tighten, your supply chain needs to do more than deliver — it needs to deliver responsibly.

Here’s how you can align efficiency with sustainability:

Cut emissions by reducing overproduction.
Optimize transportation and storage to reduce environmental impact.
Invest in green transport, circular processes, and smarter production cycles.

In short, efficiency and sustainability no longer compete — they complement each other. And when you build a supply chain that supports both, you don’t just meet expectations — you lead the market.

Ready to unlock your supply chain’s hidden power?

The €23 billion problem we exposed in Part 1 is also a €23 billion opportunity — if you act on it. By combining smarter forecasting, leaner stock strategies, and sustainability integration, you can build a supply chain that’s leaner today, greener tomorrow – and ready for the future.

Ready to turn your supply chain into a strategic advantage? Let’s get started. Contact Optilon today to start optimizing your inventory and building a sustainable future.

Haven’t read Part 1 or Part 2 yet? Check them out!

Want to read the full Unnecessary Report?

In our previous article, The €23 billion inventory trap – how did we get here? (Part 1), we exposed a hidden challenge costing Nordic companies a staggering €23 billion. This is unnecessary inventory that’s weighing down operations, tying up capital, and inflating environmental footprints. The good news? Problems create opportunities — and in this case, the opportunity is massive. So, how exactly do you turn €23 billion worth of “waste” into a competitive advantage? Let’s dive in.

3 inventory optimization strategies for smarter supply chains

If you’re looking to take control of your supply chain, cut down on waste, and free up valuable capital, it starts with rethinking how you manage inventory. We’ve seen it firsthand — when companies start treating inventory as a strategic asset (not just stuff in storage), everything changes. Here are three strategies that can help you turn excess stock into a real competitive advantage. Let’s explore them together.

1. AI-driven forecasting: Predict demand with precision

Let’s be honest: guessing isn’t a strategy anymore. If you’re still relying on outdated forecasting models, chances are you’re either drowning in stock or scrambling to meet demand — and both are costing you more than they should.

But it doesn’t have to be that way. When you put AI to work in your forecasting, you can:

Analyze real-time data from multiple sources.
Accurately predict demand patterns.
Fine-tune replenishment cycles and production schedules.

In other words, you stop reacting — and start anticipating. That means no more stockouts. No more overstocking. Just the right products, in the right place, at the right time.

The result? Less capital tied up, better product availability, and a more agile supply chain – ready for whatever comes next.

2. Lean inventory strategies: Finding the right balance

Keeping extra inventory “just in case” might feel like a safe move — but in reality, it’s silently draining your resources and slowing you down.

A smarter approach? Shift your mindset from “just-in-case” to “just-in-time”. That doesn’t mean cutting to the bone. It means being more strategic with what you stock, and where.

Here’s how you can get started:

Segment your inventory based on demand patterns and product importance.
Prioritize fast-moving items while minimizing slow-movers.
Use modern warehouse systems to streamline processes and optimize space.

With lean inventory strategies, you’ll boost service levels while lowering inventory costs — giving your business more flexibility and a healthier bottom line.

Curious about what this could mean for your business?

3. Sustainable supply chains: Reducing waste and emissions

Inventory optimization isn’t just a financial decision – it’s a sustainability strategy too.

Every unsold product represents wasted resources: materials, energy, transportation, storage space, and eventually, disposal costs. Not to mention the environmental impact.

As customer expectations rise and regulations tighten, your supply chain needs to do more than deliver — it needs to deliver responsibly.

Here’s how you can align efficiency with sustainability:

Cut emissions by reducing overproduction.
Optimize transportation and storage to reduce environmental impact.
Invest in green transport, circular processes, and smarter production cycles.

Ready to unlock your supply chain’s hidden power?

Inventory isn’t just stuff sitting on a shelf. It’s a powerful lever — if you know how to pull it. Mastering inventory optimization means more liquidity, greater resilience, stronger sustainability performance, and a sharper competitive edge.

Next up in The Future of Inventory Optimization – Sustainability and Resilience (Part 3), we’ll show you how to make these wins stick – and how your supply chain can drive lasting success. Don’t miss it – click through and see what’s next!

Haven’t read Part 1 yet? You’ll find it here.

Want to read the full Unnecessary Report?

What happens when a fast-growing global company is held back by an outdated supply chain? And how do you forecast demand and plan efficiently when your data is scattered, and processes don’t align?

That was the challenge Franke faced, managing 17 different ERP systems across a global network that made forecasting and planning a struggle. Determined to turn obstacles into opportunities, Franke teamed up with Optilon for an efficient solution.

About Franke

Franke, a global leader in solutions and equipment for residential kitchens and bathrooms, recognized the need to enhance its supply chain operations to support its expansive growth.

What began in 1911 in a small Swiss town, founded by Hermann Franke, has since evolved into a company with around 9,000 employees across 40 different countries

CHALLENGE

A supply chain network too complex to handle

As Franke expanded, so did the complexity of its supply chain. The Kitchen Systems and Water Systems divisions operated across 42 locations, including 12 production sites, serving 146 markets with more than 125,000 SKUs. With fragmented data and 17 ERP systems in play, forecasting and planning lacked structure, leading to inconsistent data structures and unstructured planning processes.

To address this, Franke implemented SAP as a master database for locations where SAP was the ERP system. While this improved data management, it didn’t solve the fundamental issue: a lack of integration in demand forecasting and planning. Franke needed a smarter, more unified approach.

SOLUTION

A strategic approach to supply chain optimization

With Optilon as a partner, Franke shifted to a smarter, data-driven planning approach. This transformation eliminated unnecessary complexity, improved decision-making, and ensured that demand forecasting aligned seamlessly with business objectives, helping Franke move from complexity to clarity, with a supply chain that drives growth.

RESULT

Results and benefits of Optilon’s supply chain planning solution

Franke’s partnership with Optilon didn’t just optimize processes, it transformed the way they operate. The results speak for themselves:

MAIN BENEFITS

Stronger forecasting process stability.
50% reduction in time spent on forecasting and demand planning, allowing teams to focus on strategic decisions rather than manual adjustments.
Increased forecast accuracy (with an 8 MAPE point improvement at the material level, providing greater reliability in decision-making).
Reduces seasonal inventory peaks and minimized bullwhip effects.

By partnering with Optilon, Franke didn’t just optimize its supply chain—it completely transformed the way it operates. With streamlined processes, greater accuracy, and a supply chain designed for the future, Franke is now stronger and better equipped to navigate an increasingly competitive global market.

Struggling with supply chain complexity? Let’s talk.

With a track record of over 1,000 successfully completed projects and 20+ years’ experience, Optilon is your trusted supply chain optimization partner. Book a meeting with us to discuss how we can help you create a solution that aligns with your specific needs and future business goals.

Imagine having €23 billion tied up — not in innovation, talent, or expansion — but in inventory you don’t really need. Sounds crazy, right? Well, that’s exactly what’s happening across the 400 largest companies in the Nordics. Optilon’s latest Unnecessary Report reveals a hard truth: despite best efforts, businesses are still sitting on mountains of unnecessary inventory. And it’s getting worse — up 16% since 2021. So, the big question is: How did we end up here? And more importantly — how do we fix it?

What’s driving the excess inventory problem?

It all started with good intentions. After all, when the world shut down during the COVID-19 pandemic, many companies did the logical thing — they stocked up.

But the “safety stock” strategy stuck around longer than it should have. Now, demand patterns have changed, customer expectations have shifted, and those warehouses are packed tighter than ever.

Add to that old-school forecasting tools that can’t keep up with today’s fast-moving markets, supply chain disruptions triggered by geopolitical uncertainty, and outdated inventory systems that make agility almost impossible.

The result? Businesses are now paying the price for being “too prepared.”

The real cost of holding excess inventory

It’s not just warehouse space that’s being wasted. When inventory piles up, so does the pressure — on your finances, your operations, and even your environmental footprint.

Think about it:

Capital that could fund your next big innovation, talent, or expansion is sitting idle on dusty shelves.
Too much stock means more admin work and less room to move, which can slow down your entire supply chain and make it harder to stay competitive.
Unused stock becomes waste, not only costing you money but also sabotaging your sustainability goals.

In short? Excess inventory is the silent killer of business agility and growth.

Curious about what this could mean for your business?

Turning inventory waste into competitive advantage

Here’s the good news: This isn’t just a €23 billion problem — it’s a €23 billion opportunity.

The companies that get smart about inventory now — using better forecasting, real-time analytics, and sustainable practices — won’t just save money. They’ll outpace the competition, attract new customers, and strengthen their supply chains for whatever comes next.

Want to know how? Stay tuned for Part 2: How to master inventory optimization, where we’ll dive into exactly how you can turn today’s waste into tomorrow’s wins.

Let’s master inventory efficiency – and unlock massive hidden value!

Want to read the full Unnecessary Report?

How can a global leader in industrial solutions recover when they realize their supply chain is more fragmented than connected? How does a company with a vast network ensure seamless planning and forecasting across continents?

SKF, a 9 billion industrial manufacturer, confronted these challenges by transforming its supply chain planning into a harmonized way of working.

About SKF

SKF is the world’s largest bearing producer, serving 130+ countries and 40 industries. With 94 plants in 24 countries, SKF is automating Supply Chain Planning, allowing planners to focus only on deviations.

In 2020, SKF received the Gartner Supply Chainnovator Award in the industrial category for its innovative use of a Digital Twin, implemented in collaboration with Optilon using the Optilon Integration Platform (OIP). Gartner describes the award as part of an annual program that “identifies, assesses, and awards outstanding examples of supply chain innovation.” The initiative recognizes unconventional, high-impact projects that are transforming supply chains and setting new industry standards.

CHALLENGE

A supply chain ready for transformation

For years, SKF managed its supply chain regionally, with operations spanning over 94 manufacturing plants in 24 countries, serving more than 130 markets with a wide range of products. This decentralized approach made it difficult to gain a clear, company-wide picture, impacting agility and decision-making. As the company grew, so did the need for a global, streamlined approach to supply chain planning. It was time for a change.