About the Client:

Our client is an American multinational food manufacturing company with products manufactured in 18 countries and marketed in over 180 countries.

 

Business Objectives:

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.

 

The Solution:

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.