Reducing obsolete Inventory in the Supply Chain of a FMCG company
A leading FMCG company saves millions in its Supply Chain from the Management of Obsolete Inventory and by Effective Collaboration between Tollers, Sub Contractors and other Vendors
One of the leading FMCG Companies from US was having regular problem of increased losses on account of obsolesce of the stocks, discarding old inventory and associated losses in missed sales opportunities.
YPoint Analytics was approached by this leading FMCG Company for the solutions in the following specific areas:
Problem Statement:
- Design and Install appropriate Demand and Production Schedule Collaboration to align suppliers with the fluctuating Demand of this particular brand.
- Manage and Track Obsolete Inventory and devise ways to minimize obsolete inventory.
- Obtain a quick view of the Inventory across the entire network to facilitate accurate procurement decisions
The Solution: Y Point Analytics Approach
- Carried out an SC Assessment work shop and fitment analysis for Network Collaboration
- Implemented a solution that involved Purchase Order Collaboration, Collaboration on Scheduling Agreements and Inventory collaboration across the entire network
- Built Specific functionality for vendors to upload component Inventory onto the portal and built a custom functionality to maintain a flat Bill of Materials and consequent Master Data
- On boarded suppliers and other collaborators onto the system to ensure one version of truth and visibility
Output & Benefits Delivered
- Estimated Savings in Inventory of USD 1.5 mn per annum
- A reduction in headcount for maintaining partner relationships resulting in additional savings from
lower manpower costs
Duration of the project: Six Months
Inventory Obsolescence Management
