Inventory optimization maximizes efficiency for a global chemical and consumer durable producer’s inventory
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Inventory optimization maximizes efficiency for a global chemical and consumer durable producer’s inventory
Translytics's advanced algorithm revolutionized a leading global chemical and consumer goods producer to optimize their inventory by leveraging advanced analytics.
Inventory optimization
Translytics's advanced algorithm revolutionized a lubricant producer's supply chain, integrating demand analysis and modeling to streamline operations and improve efficiency
Summary
The customer operates in two business areas: Adhesive Technologies and Consumer Brands. Headquartered in Navi Mumbai, both Adhesive Technologies and Consumer Brands, through the Hair category, have a strong presence in the country. The customer was struggling with their inventory management with majority of cases for excess and obsolete inventory. Through Translytics help, they were able to achieve.
Approx. 10%
Overall reduction in Inventory
Areas of Focus
Inventory driven by S&OP process and MRP calculations/suggestions through SAP
Excess & Obsolete inventory in both FG as well as RM
Client was not able to:
Find Root causes for wrong inventory decision
Take Corrective actions when needed to optimize the inventory
Improve supplier performance
Solution Approach
In response to the customer's specific needs and challenges, Translytics utilized sophisticated inventory analysis and optimization algorithms to conduct a thorough analysis in the following areas:
Understand As-Is inventory planning process
Analyse the gaps in the process
Confirm the process gaps through data using analytics on python
Create a system to generate alerts for:
when wrong decisions are taken
when an abnormality in demand is observed which is going to impact inventory
Suggest actions to optimize inventory levels
An intelligent decision-making layer was built both for FG as well as RM inventory
Impact
Once the solution models were finalized and deployed, the customer reaped the following benefits:
Reduced overall inventory by 12%
An intelligent layer was created on top of data layer to generate alerts and actions for better decision making
Customized algorithms capable of capturing external data
Company
Leading global chemical and consumer goods producer