Process

Complex analysis to ensure optimal service, levels of, and deployment of inventory throughout network.  Typical analysis performed:

• Inventory deployment
• Optimal safety stock
• Economic Order Quantity (EOQ) by product family
• ABCD analysis by product family  

Value

Potential reduction of finished goods inventory by 15%-25%.

• Assume annual sales of $1 billion
• Finished goods inventory is 15% of COGS or $150 million.
• Annual savings of $22 to $37 million
• Reduction in square feet requirements throughout network
• Increased turns and reduced carrying costs.
• Increased service by less stock outs.
• Reduction in transportation costs due to trans-shipments.