Finished goods inventory reduction for consumer client
We helped our client save $10M on inventory (15% reduction) by deploying our inventory optimization model into a best in class SIOP process. Within weeks, we could measure the impact of our work as we freed up capital, reduced carrying costs and reduced the likelihood of waste.
Impact
We reduced a client's finished goods inventory by $10M by deploying an efficient technology-enabled SIOP process. We delivered a technology tool, planning process and built capabilities for our client to sustain the impact long after we were finished.
Context
Our client was showing signs of a sub-optimal planning process for their finished goods inventory. They had both wasted products, and inventory shortages occurring at high rates. The need for change was clear, but how to get it done was not. We partnered together to define a 3-month journey to diagnose the problem, build a solution and ensure lasting success through capability building.
Approach
We started by quantifying the opportunity at stake. This had the added benefit of establishing how we would measure the impact of our work. With this in hand, we built data pipelines into our optimization engine that allow for rapid calculations of optimum order schedules. We worked side-by-side with the clients planning team to deploy the tool, measure the impact, and train their staff as we "worked ourselves out of a job".
