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
The approach broadly comprised a 2-step solution that blends the nature of the product i.e. standard/customized and optimal storage time.
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.
The Opportunity Cost model helped client cut leakages by 25-30% saving $1.5 M.
The turnaround time to treat any underperforming inventory decreased by 5 times after just 3 months of applying the solution.