Inventory Optimization for a Multi-Channel Electronics Retailer

A leading electronics retailer operating across both online and brick-and-mortar channels was experiencing growing difficulty in balancing product availability and inventory costs. The company managed a wide assortment of products, each with varying seasonal demand profiles. As global trade disruptions intensified, the retailer struggled with simultaneous stockouts and inventory surpluses. This challenging situation resulted in reduced service performance and simultaneously increased carrying costs. With fast lead times critical to maintaining customer satisfaction, the company turned to Miebach for a solution to optimize its inventory across all channels and product categories.

Miebach Consulting approached the problem with a structured, data-driven inventory optimization strategy. Using a full year of inventory snapshots per SKU, the team mapped seasonal demand fluctuations, lead time variability, and service level targets. This dataset was enriched with key cost inputs, including holding, ordering, and shortage costs by channel.

After validating and structuring the data, Miebach applied Log-hub’s “Inventory Optimization” app to model reorder points, order quantities, and review periods under various cost and service scenarios.

These simulations allowed the client to compare policy alternatives side-by-side, identifying optimal inventory strategies tailored to their sales structure. Beyond tool implementation, Miebach developed a roadmap for ongoing monitoring, process improvement, and integration into the client’s planning cycle.

The initiative led to a 16% reduction in inventory value, while also increasing the on-time-in-full (OTIF) delivery performance by 10%. Ordering costs were reduced by 5% through better-aligned policies and planning parameters. The project not only resolved immediate inefficiencies but also gave the retailer full visibility into the drivers behind inventory imbalances. As a result, the organization institutionalized scenario modeling and continuous review as part of its supply chain planning process. With greater agility and decision-making precision, the retailer was better positioned to meet customer expectations while lowering working capital requirements.