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%
