100% Visibility of SKU Inventory and Reduction in Sales Loss Achieved by a Lubricant Manufacturer with the Help of Inventory Optimization Techniques

Sep 22, 2016

Business Challenge

Efficient management of inventory levels.

A leading lubricant manufacturer wanted to conduct analysis on their inventory levels and implement solutions to improve replenishment schedules.

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Issues due to low visibility on inventory status.

The client was facing challenges of irregular replenishment schedules and increased stock outs despite carrying a huge inventory, due to low visibility on the inventory status.


Inventory optimization solution.

We developed a stochastic model that enabled clients in handling supply uncertainty and demand volatility for assessing key drivers such as seasonality, demand fluctuations, supply reliability, raw material constraints, etc. We also helped them set up the right safety stock levels.

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Achieved 100% visibility of SKU inventory and reduction in sales loss.

With the help of our solution, the client was able to reduce inventory levels and achieve cash flow availability for investment. They also were able to achieve higher fill rates for optimal service and reduced risk of understocks and overstocks. Eventually, they were able to achieve a significant reduction in replenishment cycles and gain 100% visibility of SKU inventory with a reduction in lost sales on account of stock-outs.

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