8 Actions Wholesale Distributors Can Take to Right-Size Inventory

White papers

SCP

8 Actions Wholesale Distributors Can Take to Right-Size Inventory

Outlines how wholesale distributors can reduce excess inventory during economic slowdowns using real-time analytics and AI-powered dynamic planning.

Published

June 4, 2026

Read time

3 min read

Source

This white paper addresses the challenge of surplus inventory buildup among wholesale distributors amid inflation and slowing demand. It explains the limitations of siloed systems and deterministic forecasting, then details how probabilistic forecasting combined with machine learning enables dynamic inventory optimization. The document presents eight specific actions distributors can implement to balance service levels with working capital efficiency across multi-echelon networks.

Key takeaways

Real-time unified data platforms eliminate siloed inventory and demand information across ERP, WMS, and planning systems.

Probabilistic forecasting with machine learning provides demand ranges rather than single-point estimates for better accuracy.

Stock mix optimization sets variable service levels by SKU while meeting overall service class targets to reduce safety stock.

Multi-echelon inventory optimization treats the full warehouse network as a shared pool to lower total holdings.

Dynamic planning incorporates live orders and external signals to adjust forecasts and replenishment frequency continuously.

Market overview

SCR methodology note

Vendor landscape

Leaders

Implementation considerations

Important consideration

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