Vendor Managed Inventory Case Study - Consignee

Business Problem

  • High inventory levels causing poor working capital performance
  • Inconsistent order management processes with suppliers
    • Within site
    • Across multiple sites

Objectives

  • Reducing working capital tied-up in raw material inventory
  • Consistent and effortless order management process with suppliers

Process

  • Install Global VMI at initial site
  • Conduct supplier day at that site to engage & train the suppliers
  • Translate to other locations after initial benefits realized at first site

Results

  • Average raw material inventory reduced by 45%
  • Inventory management and replenishment responsibility shifted to suppliers, freeing up 1 FTE per site

Total Savings Identified:
$394K in Working Capital
$240K in Compensation & Benefits

Please contact us today to see how we can help you achieve similar results.