In this phase, analytical models are applied to diagnose why performance gaps exist in inventory management, such as excess inventory, service issues, forecast error, or process inefficiencies. These insights are then translated into quantified opportunities that help optimize your inventory. By comparing scenarios and sizing the impact of different improvement levers, teams can effectively leverage Supply Chain Analytics. Opportunity sizing converts analytical findings into measurable, decision-ready value—such as working capital reduction, service or fill-rate improvement, inventory turns or months of supply improvement, cost reduction, and revenue or availability upside. This process moves teams from merely understanding the data to demonstrating where value exists and how significant it is, ultimately contributing to improved Supply Chain Optimization.