The approach broadly comprised a 2-step solution that blends the nature of the product i.e. standard/customized and optimal storage time.

                    Devising Rules

                    • We analysed past sales data to classify products as high, medium and low selling and used product class to create rules to classify inventory into the underperforming category.
                    • Segregated underperformers further into Slow and Non-Movers and proposed category and product class-based actions to treat the underperformers.
                    • Created rules to tag and quantify an inventory to Excess, Permissible or Shortage range based on multiple metrics like product class and category.
                    • Created an Opportunity Cost model to help the client realize the leakage in revenue because of the current Inventory Management process in place.

                    Developing Framework

                    • We created Tableau dashboards that
                      • Helped user to track all basic metrics across warehouses
                      • Enabled user to realize inventory across the underperforming category
                      • Enabled user to identify under and over stocked overstocked inventory
                    • We also used Smartsheets as a project Management tool. These sheets held the list of all the underperforming products with relevant information for the user to take necessary actions.
                    • Connected Smartsheets to Tableau to reflect the actions taken in real-time and created a one stop solution for users
                    • Enabled the smart sheet and eventually dashboards to track any kind of business exceptions while identifying underperformers.

                    KEY BENEFITS

                    • The comprehensive solution tracked the basic day-to-day inventory flow and the analytical layer highlighted the underperformers, excess and shortages in inventory
                    • The Opportunity Cost model highlighted the leakage in revenue as a potential income
                    • Excess and shortage classification helped client with effective inter-warehouse transfer and production plan
                    • Smart sheets helped the executives keep track of the corrective actions taken across each department and increase transparency and accountability


                    • Our analysis helped the client to move nearly 97M pounds of inventory which were slow moving or non-moving resulting in around $4M+ in annual savings.
                    • The Opportunity Cost model helped client cut leakages by 25-30% saving $1.5 M.
                    • The turnaround time to treat any underperforming inventory decreased by 5 times after just 3 months of applying the solution.