AIO expected to grow at a rate of 12.6%
With advances in every sector and technology stepping in to ensure maximization of efficiency, the field of supply chain management can also feel the tremors. And with that accepted, it does not come as a surprise to know that the Advanced Inventory Optimization (AIO) is expected to grow at a rate of 12.6 per cent in the next five years, as per a study conducted by Dedham, Mass.- based ARC Advisory Group.
According to ‘Advanced Inventory Optimization Worldwide Outlook: Market Analysis and Forecast through 2010′, the market stood at $99.2 million in 2005. This is forecasted to reach $179.6 million in 2010.
Going into the minute details that make a world of difference, AIO is different from the traditional supply chain planning solutions, as it simultaneously calculates how much inventory should be held across the network of locations. Traditional solutions use single stage inventory calculators to determine inventory targets for a single node in the supply chain.
Further, due to the complex nature of AIO, this software solution would generally be outsourced as it requires very high skill levels for implementation.
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