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Inventory optimization maximizes efficiency for a global chemical and consumer durable producer’s inventory
Success Stories
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
