You turn to Accordion.
We assess the processes that plan and manage inventory for the US operations to identify improvement opportunities and develop a plan to address them, including:
- Diving into inventory improvement opportunities with functional stakeholders in corporate and operating plants
- Assessing the current state through interviews with corporate, supply chain directors, and plant managers; Documenting current operating processes, data & system capabilities, roles & responsibilities, and pain points; Touring plants; Analyzing the raw material, work in progress, and finished goods inventory; Determining current level of inventory days of supply (DOS).
- Designing the future state by developing an order cycle optimization model to reduce inventory DOS; Evaluating additional inventory improvement opportunities across quality holds process/policy, forecast planning & accuracy, and 3PL locations; Developing a prioritized roadmap approach to achieve future state targets across 4 initiatives; Prioritizing plants and SKUs for order cycle optimization pilot.
Your value is enhanced.
You get a roadmap for the inventory optimization program with a targeted solution to reduce inventory by $37M through order cycle optimization, standardizing quality policies, and improving forecast accuracy/planning. You also now have identified opportunities to drive EBITDA enhancement by ~$10M through network optimization—by reducing the need for overflow 3PL warehouses (including labor, material movement charges, and shuttle/transportation.)
The order cycle optimization pilot results in a targeted inventory reduction of $10.5M, reducing DOS from 33 to 20 days, and further identified non-pilot SKU inventory reduction opportunity of $15M (for total inventory reduction of $25.5M.)