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SCALA CASE STUDY

Inventory Optimisation

Major Ambient Grocery Manufacturer

Background & Brief

The client, producing a range (800 skus) of Ambient food products from 3 UK Factories wanted to understand the size of opportunity and methodology required in order to optimise its inventory of both Finished Goods & Materials/Packaging.

Project Approach

  • SCALA worked with the client to establish and understand its current metrics, methodologies & performance within Supply Chain Planning
  • This included various remote meetings with key stakeholders within the business
  • From this the following were identified
    • Size of prize in terms of 1/ Inventory value 2/ Stock at risk, together with supporting rationale
    • Key levers and actions to unlock the opportunities
    • A recommended implementation roadmap
    • Short term quick wins and a longer term sustainable improvement plan

    Benefits & Results

    The evaluation identified a 20% stock value optimisation opportunity and a stock at risk reduction opportunity equivalent to 10% of annual profit The evaluation identified key improvement areas across Product Management, Demand Planning and Supply Planning.
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