Inventory reduction by 18%

Challenge

  • High inventory levels of 217 days, blocking critical working capital
  • Ineffective manual controls resulting in leakage and potential opportunities for fraud
  • A huge mismatch between book stock and physical stock
  • Blocked working capital in the non-moving stocks

How we helped

  • Segregated the Slow / Non-moving stock and liquidate systematically
  • Fixed stock levels considering lead times for Finished Goods and Raw Materials
  • Aligned procurement policies in line with revised inventory policy
  • Conducted physical stock taking and reconcile with the book stock
  • Took a one time hit and update with the physical stock
  • Implemented BI solution for monitoring stock levels

Benefits

  • Defined inventory levels helped in moving towards a reduced inventory target
  • Helped in devising the procurement strategy for optimizing blocking of funds on inventory
  • Made the best use of the old stocks and get away with the junk.
  • BI reports helped monitoring and improved controls
  • Reduced person dependency and made process driven
  • Helped reduce inventory by 18%