Releasing a streamlined inventory strategy for a valve manufacturer

Picture this...

You’re a family-run valve manufacturing company with an annual revenue of $150M. Lately, you’ve run into some financial troubles: you have extremely high inventories, your employees are working significant overtime, and your overall productivity is lacking. Testing lending covenants, you need to take action—and you need help doing so.

You turn to Accordion.

We partner with your team to overhaul your inventory management strategy and improve productivity. We:

• Develop a future state planning strategy for raw materials and components that ensures stocking levels are maintained based on the sales plan.
• Reverse the trend of purchasing incorrect/too much inventory by resetting stocking levels and aligning with vendor replenishment, allowing you to purchase products in appropriate numbers.
• Reduce headcount from 1375 to 900 FTEs and reimagine the location of a difficult-to-recruit-for position previously based in a remote area.

Your value is enhanced.

Your new inventory planning strategy and productivity improvements drive a $39M cash flow increase, $15M in recurring benefit, and a direct debt reduction of $50M over 3 years. Breaking it down, you:

• Reduce direct and indirect costs by 34% and reduce manufacturing expenses by 20%.
• Increase utilization by 25-30%.
• Reduce scrap and rework by 40%, inventory by $39M, and lead time by 50%.