Business Challenge
A multi-location manufacturing company was experiencing high inventory carrying costs, increasing working capital blockage, stock shortages of critical items despite excess inventory, and inadequate visibility over inventory ageing and movement.
Our Approach
Understand
Reviewed end-to-end inventory lifecycle covering procurement, receipt, storage, issuance, production consumption, inter-unit transfers, and dispatch processes. Conducted discussions with Stores, Production, Procurement, Finance, and Planning teams.
Assess
Assessed inventory management policies, warehouse controls, stock verification procedures, inventory planning mechanisms, ERP controls, and reporting practices. Evaluated adequacy of inventory governance and accountability structures.
Identify
Identified excess and slow-moving inventory, obsolete stock accumulation, inaccurate stock records, delayed inventory reconciliations, non-moving items occupying warehouse space, and gaps in inventory planning and replenishment controls.
Analyze
Performed ABC, FSN, VED and inventory ageing analysis, stock turnover assessment, carrying cost evaluation, consumption trend analysis, inventory reconciliation review, and root cause analysis of stock variances and excess holdings.
Recommend
Recommended inventory rationalization strategies, optimized re-order levels, cycle counting framework, inventory ageing controls, obsolete stock disposal mechanisms, enhanced inventory planning processes, and dashboard-based inventory monitoring.
Implement
Assisted management in developing inventory control SOPs, inventory ageing dashboards, cycle count procedures, stock classification mechanisms, inventory review formats, and ERP-based exception reporting.
Monitor
Established periodic stock verification programs, inventory ageing reviews, slow-moving inventory monitoring, stock variance reporting, inventory KPI dashboards, and management review mechanisms.
Outcome
Reduced inventory carrying costs, improved inventory accuracy, optimized warehouse utilization, enhanced working capital efficiency, improved stock availability of critical items, strengthened inventory governance, and enabled data-driven inventory planning and control.
