The official business definition of Multi Echelon is a supply chain management strategy that optimizes inventory levels across multiple locations and tiers. This strategy allows companies to reduce their overall inventory costs while still maintaining the necessary stock levels to meet customer demand. By using Multi Echelon, companies can reduce the amount of inventory they need to carry, while also improving their customer service levels. The strategy works by analyzing customer demand patterns and adjusting inventory levels accordingly. This allows companies to ensure that they have the right amount of inventory at the right time, without having to overstock or understock their products. Additionally, Multi Echelon can help companies reduce their transportation costs, as it allows them to better plan their supply chain and reduce the number of shipments they need to make. Ultimately, Multi Echelon is a powerful tool for businesses to improve their supply chain efficiency and reduce their overall costs.