Inventory Management

A customer in the chemicals industry used vendor managed inventory to reduce customer inventory levels, eliminate expedited shipments, and sign more long-term agreements with customers.

THE RESULTS

$100K/Silo

Saved $100K per silo by reducing customer inventory levels.

 

30%

Reduced customer inventory levels by 30% on average.

 

Vendor Managed Inventory

Business Problem:

  • A large number of expedited shipments from customers, increasing distribution costs
  • Low fleet utilization and high levels of forward-deployed inventory
  • Dissatisfied customers
  • Poor demand visibility

Objectives: 

  • Eliminate expedited shipments
  • Improve customer relationship management and differentiate from the competition
  • Gain a view of true customer and market demand

Process:

  • Identify target customers with your commercial team
  • Obtain long-term contracts from customers in exchange for GVMI service
  • Deploy IntelliTrans GVMI
  • Drive business process change to realize benefits

Results:

  • Customer inventory levels reduced by 30% on average
  • Eliminate expedited shipments
  • Numerous long-term agreements signed with customers

Inventory

Overview

A customer in the chemicals industry used vendor managed inventory to reduce customer inventory levels, eliminate expedited shipments, and sign more long-term agreements with customers.

Challenge

The customer had high distribution costs resulting from poor visibility into true customer demand.

Solution

Deploying Global Vendor Managed Inventory℠ (GVMI) and driving business process changes to realize benefits.

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