Gaining insights into Inventory Write-offs!
About the Client:
Our client is an American multinational food manufacturing company with products manufactured in 18 countries and marketed in over 180 countries.
Our client had an opportunity to reduce product inventory that cannot be sold, damaged in production, quality concerns, packaging changes, over-production, over purchase and inventory count adjustments. Client wanted to control their costs by:
- Analyzing the costs related to all types of materials: Raw Material, WIP and Finished Goods.
- Classifying the write-off cost with Root Cause & Reason Codes driving operational accountability to influence change across all business units.
- Identifying the owners who could take corrective action.
TekLink consultants, using Anaplan, Microsoft SQL, SAP ECC, SAP Business Warehouse, SAP BusinessObjects Data Services and Tableau, delivered the following solution to the client:
- Built a visual analytical dashboard to showcase Inventory Write Off (IWO) costs by root cause and reason codes across all business units.
- Implemented an analytical dashboard in Tableau to categorize reason codes into root causes and start continuous improvement initiatives to reduce inventory write-offs.
Outcome and Benefits:
- Continuous improvements in place for every phase to identify root causes of inventory like Recall Products, Inventory adjustments, Quality and Damage.
- Organizational effort solely focused on reducing Inventory write off Costs
- Reduced cost of inventory write-offs thereby increasing the profitability of the client
“Thanks for everyone’s hard work on this…. it’s a very slick dashboard that will provide a lot of insight/value to the organization.”
– Director, Finance
Contact Us to learn more about this experience.