Originally Published on: QuantzigHow We Transformed Stock Out Prevention and Inventory Redistribution for a Thriving CPG Client 

Client Overview: Our recent client, a major player in the FMCG and CPG sector based in the USA, features 6000 employees dedicated to innovation and customer satisfaction.

Challenges:

1. Minimizing Average Stock: The client targeted a reduction in average stock levels.
2. Eliminating Stockouts: The goal was to eradicate stockouts across multiple warehouses.
3. Inventory Imbalance: Uneven stock distribution posed operational challenges.
4. Inefficient Stock Movements: Issues included delays, errors, and increased costs in material transfers.

Solutions: Our state-of-the-art solution introduced a dynamic and proactive approach to supply chain management. Key steps included:

• Conducting meticulous analysis of forecasted versus actual demand.
• Identifying forecasted deviations at the customer level.
• Automating the creation of a redistribution plan based on likely stockout scenarios.

Impact Delivered:

• Achieved an impressive 40% reduction in stockout instances.
• Realized a substantial 3% reduction in overall stock-on-hand.
• Successfully optimized inventory allocation for enhanced operational efficiency.

Client Profile: A key player in the FMCG and CPG industry, headquartered in the USA, with over 6000 skilled employees committed to innovation and excellence. They consistently redefine industry standards with a diverse range of high-quality products.

Addressing Challenges:

1. Inventory Imbalance: Uneven stock distribution across multiple warehouses resolved.
2. Inefficient Stock Transfers: Streamlined material transfers, minimizing delays and errors.
3. Demand Forecasting: Improved forecasting for better planning and resource allocation.
4. Coordination Quandary: Enhanced coordination across multiple warehouses achieved.

Quantzig's Role:

1. Dynamic Forecasting: Identifying forecasted versus actual demand, providing invaluable insights.
2. Stockout Mitigation: Proactive measures to address forecasted deviations, enabling timely actions.
3. Automated Redistribution Planner: Striking a balance between business benefits and logistics costs, optimizing inventory allocation.

Achievements: Our solution revolutionized supply chain management, introducing efficiency, agility, and cost-effectiveness. The company stayed ahead of demand fluctuations, minimized disruptions, and significantly enhanced customer satisfaction.

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