Success StoryFMCG

Advanced Multi-Echelon Inventory Optimization: $40.13M Capital Released & 68% Stockouts ↓ for Leading FMCG Brand

Translytics Team13/10/202510 min read
Leading FMCG Brand
Large-Scale FMCG Manufacturer
Mumbai, Maharashtra, India
Operation Base
FMCG
Industry

The Challenge

The FMCG brand faced persistent supply chain challenges, including high carrying costs, frequent stockouts, and inefficient network planning. Inventory was often misaligned with demand across multiple distribution centers, causing excess working capital in some locations and shortages in others. Manual network planning and lack of real-time visibility made it difficult to optimize inventory across the supply chain, impacting service levels and profitability.

Key Problem Areas

  • • High inventory carrying costs tying up working capital
  • • Frequent stockouts affecting product availability and sales
  • • Inefficient network planning across distribution centers
  • • Lack of AI-driven insights for multi-echelon inventory optimization

Our Solution

Translytics implemented an AI-powered multi-echelon inventory optimization platform. The solution provided end-to-end visibility of inventory across all nodes, optimized stock allocation, and balanced service levels with cost efficiency. Advanced algorithms identified opportunities to release capital while ensuring high fill rates and reducing stockouts.

Multi-Echelon Optimization

Balances inventory across the network to reduce costs and improve availability.

Capital Release Analysis

Identifies excess working capital in the network and reallocates efficiently.

Fill Rate Enhancement

Optimizes stock distribution to maximize service levels.

Stockout Reduction

Prevents shortages while minimizing excess inventory.

Key Results

$40.13M
Capital Released
Freed up working capital tied in excess inventory
99.2%
Fill Rate
High product availability across all nodes
42%
Inventory Turns
Improved inventory efficiency and faster stock rotation
68%
Stockouts Reduction
Significantly reduced product shortages

Client Testimonial

"
Perfect balance between service level and inventory cost. Translytics helped us optimize our network and release substantial capital, without compromising product availability.
CS
Chief Supply Chain Officer
Chief Supply Chain Officer
Leading FMCG Brand

Implementation Details

14 weeks
Duration
20 members
Team Size
4
Modules Implemented

Modules Implemented:

Multi-Echelon Inventory OptimizationCapital Release AnalysisFill Rate EnhancementStockout Reduction

Tags

Multi-Echelon InventoryFMCG IndustrySupply Chain AIInventory OptimizationWorking Capital Efficiency

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