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.