Insights

Starting in 2013, our client, an online furniture company saw a rapind growth during Covid. Post Covid, the things slowed down for online retailer and this could resulted in excess stock. We were hired with a task to streamline inventory management operations. We established a collaborative S&OP process involving marketing, marketing place operations and finance. The company had 350 SKUs in bedroom, living room, dining and outdoor categories. Through Pareto analysis, we categorized inventory into A,B,C and D classes respectively suggesting different forecast models and safety stock policies. The S&OP process helped us streamlined a realistic revenue projects and create budget constrained supply plan. In three years , we improved stock turned, saved 3 million in working capital, reduced stock outs and enhanced service level from 83% to 92%.

The biggest achievement for us was to help company consolidate suppliers in various categories resulted in lower MoQs and reduced risk to stocks at the beginning or end of the lifecycle planning spectrum