---
id: how-does-network-location-affect-my-inventory-levels
title: "How does network location affect my inventory levels?"
category: guide
subtopic: network-optimisation
page_type: guide
source_url: "https://neosbyargonandco.com/fmcg-inventory-optimisation"
tags: ["supply chain network", "distribution", "inventory pooling", "logistics"]
questions:
  - "Where should I hold inventory?"
  - "How does centralising inventory help?"
  - "What's inventory pooling?"
related: [demand-forecasting, procurement-strategy]
---

Your inventory location within the network plays a critical role in optimisation. Centralising inventory in one location and distributing it as late as possible reduces overall inventory needed, because demand from different customers can be pooled together.

However, this must be balanced against lead times required to move inventory to customers. A well-optimised network strategy considers both the pooling benefits and your ability to meet customer demand in a timely manner.

The right network strategy is unique to your business. Argon & Co helps FMCG companies design network approaches that balance efficiency with service. Contact us to discuss your specific situation and explore opportunities to reduce inventory while meeting customer needs.