Gaining insights into Inventory Write-offs!

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.


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


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