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          APPROACH

          The approach broadly comprised a 2-step solution that blends the nature of the product i.e. standard/customized and optimal storage time.

          Devising Rules

          • We analysed past sales data to classify products as high, medium and low selling and used product class to create rules to classify inventory into the underperforming category.
          • Segregated underperformers further into Slow and Non-Movers and proposed category and product class-based actions to treat the underperformers.
          • Created rules to tag and quantify an inventory to Excess, Permissible or Shortage range based on multiple metrics like product class and category.
          • Created an Opportunity Cost model to help the client realize the leakage in revenue because of the current Inventory Management process in place.

          Developing Framework

          • We created Tableau dashboards that
            • Helped user to track all basic metrics across warehouses
            • Enabled user to realize inventory across the underperforming category
            • Enabled user to identify under and over stocked overstocked inventory
          • We also used Smartsheets as a project Management tool. These sheets held the list of all the underperforming products with relevant information for the user to take necessary actions.
          • Connected Smartsheets to Tableau to reflect the actions taken in real-time and created a one stop solution for users
          • Enabled the smart sheet and eventually dashboards to track any kind of business exceptions while identifying underperformers.

          KEY BENEFITS

          • The comprehensive solution tracked the basic day-to-day inventory flow and the analytical layer highlighted the underperformers, excess and shortages in inventory
          • The Opportunity Cost model highlighted the leakage in revenue as a potential income
          • Excess and shortage classification helped client with effective inter-warehouse transfer and production plan
          • Smart sheets helped the executives keep track of the corrective actions taken across each department and increase transparency and accountability

          RESULTS

          • Our analysis helped the client to move nearly 97M pounds of inventory which were slow moving or non-moving resulting in around $4M+ in annual savings.
          • The Opportunity Cost model helped client cut leakages by 25-30% saving $1.5 M.
          • The turnaround time to treat any underperforming inventory decreased by 5 times after just 3 months of applying the solution.

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