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.
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.
