Published: Jul 8, 2025
Overview
A manufacturer lacked adequate visibility to their inventory, exhibited poor inventory control, lacked vendor SOPs, and an integrated ERP system.
Challenges
A manufacturer of branding solutions, including signage and LED lighting for large retailers, had significant inventory management inefficiencies. The organization lacked visibility to supply chain operations and KPIs. Nearly $1.2M had been written off due to poor inventory control. Additionally, there was no ability to trigger inventory needs, material forecasting, nor lead times.
There was a lack of trained personnel to properly engage with vendors. As well, there was no systematic interface across all facets of the business, including the lack of a cloud-based ERP system to manage the business.
Solutions
- Upgrade inventory accuracy from 87% to exceed industry standard of 97%.
- Develop full access to min/max quantities and lead times for materials and equipment.
- Significantly reduce right off volume of erroneous materials for cost savings.
- Develop SOPs for all inventory management functions.
- Implement a new cloud-based ERP system to connect all business segments including: finance, accounts payable & receivables, production control, operations, procurement, and sales.Results
Results
- Inventory accuracy exceeds industry standard at 98.2%.
- Significant cost savings of $1.08M due to 82% reduction of material write-offs.
- Implemented standardized inventory processes and procedures resulting in 35% increase in business efficiency.
- Due to new vendor management procedures, reduced inventory lead time by 20%.
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