Increased The Realized Revenue By Defining New Rules To Identify Optimal Inventory Health

CASE STUDY

Increased The Realized Revenue By Defining New Rules To Identify Optimal Inventory Health

SUMMARY

The client wanted to find excess/shortage inventory and build an automated solution that can help take corrective actions. In their previous state, there was no tech solution that could help identify the underperforming inventory and take corrective actions so as to optimize the inventory management. They needed a comprehensive solution to keep track of the basic day to day inventory flows and have an analytic layer to highlight the inventory issues.

APPROACH

Collated data and integrated discrete systems to collect actionable information in a dashboard.

Identified underperforming inventory using various KPIs such as inventory turns, sales velocity etc.

Recommended right mix of SKUs based on ABC analysis and suggested the inventory norms.

Created a single platform for all users which is capable to:

Track underperforming inventory across different stakeholders (Network/warehouse)
Track corrective actions are taken to rationalize the underperformers across all departments

KEY BENEFITS

The warehouse inventory was stocked with the correct mix of SKUs in the right quantity
With the redistributed inventory, the underperforming stock was reduced for better utilization of the storage space and capital
Dashboard integration of data provided better visibility of the inventory state and gave actionable insights

RESULTS

The client was able to fix 30% of the total leakage in revenue by optimizing the movement of inventory and addressing the underperforming inventory

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