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industry
Manufacturing

New inventory recipe for a food contract manufacturer

Context

A large multi-national food contract manufacturer’s M&A-driven growth caused significant working capital to be tied to inventory.

Value Created

$26M
in inventory reduction across the organization
$10.5M
In inventory achieved through the pilot program
$10M
EBITDA increase by reducing 3PL warehouse spend
13 day
DOS reduction saved annually through Xactly commission automation for 60+ branches

People

VALUE LEVERS

  1. Current state assessment

HOW WE DID IT

  • Held interviews with corporate, supply chain directors, and plant managers to document your current process, data and system capabilities, roles and responsibilities, and pain points
  • Toured plants in person

Process

VALUE LEVERS

  1. Inventory optimization and roadmap design

HOW WE DID IT

  • Assessed processes to plan and manage inventory for US operations
  • Identified and prioritized improvement opportunities
  • Designed a go-forward plan and future order cycle model to achieve alignment across the business.
  • Implemented quick-wins to achieve improvements and savings. Created a governance framework and playbook for future inventory related initiatives.
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