Service Offering
Inventory Optimization Diagnostic
Inventory is key to cash flow and an indication of health in any complex supply chain. We identify inefficiencies and create optimized inventory strategies to improve customer service with lower working capital. Partner with Catalant to:
Approach
A Comprehensive Approach That Goes Beyond Top-Down Target Setting and Liquidating Excess
01
Assess health and effectiveness
We combine bottom-up inventory analysis with industry benchmarking to form complete picture on current state and health of inventory.
02
Identify root causes and size opportunity
We pinpoint key issues in planning, strategy, and execution that drive both stockouts and excess inventory accumulation.
03
Develop targeted solutions
We collaborate with stakeholders to assess each potential issue and address gaps in supply chain processes and systems.
04
Execute value-capture roadmap
We create an action plan that captures value in as soon as two months and ensures long-term sustainability.
Solution Spotlight: Catalant Forward Deployed Experts™
Find Inventory That’s Costing You Money
Pair supply chain operators with AI engineers to proactively identify where working capital is stuck and accelerate optimization.
Winning Together
Inventory Optimization Use Cases
Problem
A heavy industrials equipment manufacturer was struggling with increasing inventory levels, resulting in warehouse capacity overflow and a decline in on-time delivery rates. An end-to-end supply chain diagnostic revealed that material shortages were causing partially assembled products to pile up, resulting in excessive inventory and delayed customer orders.
Action
The team implemented a transformation program to address key root causes for stock outs, including creation of a Planning Center of Excellence to align demand with capacity, revising safety stock calculations to ensure component availability, and deploying a supply visibility dashboard using ERP analytics to predict and prevent last-minute surprises.
Results
Achieved significant improvements in several factors impacting working capital and profit within 6 months, including:
- 15% reduction in excess inventory
- 4% improvement in on-time delivery performance.
- 5-10% reduction in expedite, logistics, and administrative costs through better ordering
Industrial Equipment Company
Consolidated data from 30+ ERP systems, implemented S&OP and inventory playbook, improved availability, and reduced inventory by $85MM (12%)
Large Distributor
Created roadmap for new system and process architecture for next-gen inventory management practices to enhance visibility and tracking. Implemented quick wins that landed $20M in reduction (5%) in 3 months
Major Automotive Equipment Manufacturer
Set up inventory control tower, reset safety stock, and reduced inventory by $120MM (15%).
featured experts
Inventory Optimization Diagnostic Consultants
Mike Li
Catalant consultant
16 years of experience in supply chain and operations process and systems improvements
Borko Bozickovic
Catalant consultant
25 years of experience in supply chain, operations, and strategy
Mike Li
16 years of experience in supply chain and operations process and systems improvements
Former McKinsey Supply Chain Senior Consultant. Pioneered a breakthrough method to identify supply chain gaps using inventory data. Successfully deployed for 20+ clients across industries.
Borko Bozickovic
25 years of experience in supply chain, operations, and strategy
Specialized in inventory optimization, lean manufacturing, S&OP, demand planning and IIOT/Factory 4.0 across industries like transportation, manufacturing, industrials, and CPG.
Lane Adams
30+ years of experience in supply chain planning and analytics
Former consultant at Accenture, EY, and Deloitte, focused on inventory optimization, forecasting, constraint-based supply planning, and analytics.
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