Case Study - LVC: Tying Inventory Levels to Customer Demand
Client
A $3 billion U.S. manufacturer and marketer of household and personal care products.
Challenge
Reduce demand volatility driven by seasonal fluctuations and decrease inventory levels in order to leverage current assets to support future growth.
Solution
Client’s team of managers and TBM Consulting Group analyze demand patterns to optimize inventory levels, align production with customer demand and reconfigure packaging.
Results
The business unit immediately eliminated $1 million in inventory for a single product line, doubling annual inventory turns from 3.0 to 6.2 in the initial phase alone. Ultimately, inventory turns will increase to almost 11.
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