A popular and household brand for all home products at pocket friendly prices is how our client is known. Holding more than 45,000 SKU units and a sale of 180+ Crore, inventory management is an important aspect of business operation.
Very high inventory relative to sale. Very low inventory turnover ratio. Opaque purchase process.
Approach by Minton
- ABC and FMSD Categorization of all 45,000 SKUs
- Reallocation of roles and responsibilities, assigning KPIs, developing reports and weekly review for inventory management
- Analysis of cost base, purchase trends, market price discovery and renegotiations with vendors for purchase process improvement
- End-to-end mapping of purchase to sale process in ERP, identifying gaps in process and plugging them with the help of ERP vendor.
Minton’s effort changed the way inventory was looked at. Purchase and sales personnel became accountable for inventory in their respective areas leading to better control of inventory. Teething issues in the process resolved, streamlining purchase to sale process even further. Training to all staff involved in purchase to sale process to bring about more transparency in the system.
The effort resulted a trend towards reducing inventory and increasing inventory turnover ratio.
Below are some insights of improvements brought by team Minton.