Developed a comprehensive analytical solution to identify underperforming inventory and enabled corrective actions


The client wanted to identify underperforming inventory in order to stock the right mix of SKUs to avoid overstocking of inventory. To achieve this, we created

  • Unified platform to track underperforming inventory for all users spanning across different business units
  • Further, we enabled the creation and tracking of actions against underperforming inventory to rationalize underperformers across all categories


The approach broadly comprised a 2-step solution that blends the nature of the product i.e. standard/customized and optimal storage time.

Devising Rules

  • We analysed past sales data to classify products as high, medium and low selling and used product class to create rules to classify inventory into the underperforming category.
  • Segregated underperformers further into Slow and Non-Movers and proposed category and product class-based actions to treat the underperformers.
  • Created rules to tag and quantify an inventory to Excess, Permissible or Shortage range based on multiple metrics like product class and category.
  • Created an Opportunity Cost model to help the client realize the leakage in revenue because of the current Inventory Management process in place.

Developing Framework

  • We created Tableau dashboards that
    • Helped user to track all basic metrics across warehouses
    • Enabled user to realize inventory across the underperforming category
    • Enabled user to identify under and over stocked overstocked inventory
  • We also used Smartsheets as a project Management tool. These sheets held the list of all the underperforming products with relevant information for the user to take necessary actions.
  • Connected Smartsheets to Tableau to reflect the actions taken in real-time and created a one stop solution for users
  • Enabled the smart sheet and eventually dashboards to track any kind of business exceptions while identifying underperformers.

Key Benefits

  • The comprehensive solution tracked the basic day-to-day inventory flow and the analytical layer highlighted the underperformers, excess and shortages in inventory
  • The Opportunity Cost model highlighted the leakage in revenue as a potential income
  • Excess and shortage classification helped client with effective inter-warehouse transfer and production plan
  • Smart sheets helped the executives keep track of the corrective actions taken across each department and increase transparency and accountability


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Our analysis helped the client to move nearly 97M pounds of inventory which were slow moving or non-moving resulting in around $4M+ in annual savings.

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The Opportunity Cost model helped client cut leakages by 25-30% saving $1.5 M.

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The turnaround time to treat any underperforming inventory decreased by 5 times after just 3 months of applying the solution.

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