Inventory Transformation: Redesigning Inventory Policies and Processes

We partnered with a consumer goods company to redesign its inventory processes, significantly improving accuracy and operational control.

Client

A multinational consumer goods company with a nationwide retail and distribution operation.

Challenge

The client was facing significant inventory discrepancies, resulting in lost sales, high product discard rates, and lack of visibility for inventory planning.

The issue intensified after a transition of operations to a new warehouse managed by a third-party logistics provider, leading to team turnover and process instability.

Our Work

• Reviewed inventory governance processes and established KPIs and regular analysis routines for stock discrepancies.

• Identified process and system failures.

• Implemented book-to-book inventory routines, cycle counts, and wall-to-wall inventory practices.

Results

• Increased inventory accuracy from 79.2% to 99.6%.

• Developed tools and trained the team to execute inventory control routines.

• Reviewed and updated inventory policies and processes, ensuring long-term stability.