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