From Static Processes to Dynamic Performance
A global manufacturer of sprinkler systems, with operating factories in China and Korea, faced mounting challenges in a fast-changing market. Long lead times and outdated inventory processes limited flexibility, while competitive pressures and high customer expectations made product availability critical. Market dynamics made forecasting challenging, and the increase in backorders put our client’s market position under pressure.
Ambition: Customer-focused operations with 95% service level
To remain competitive and protect market share, the company wanted to transform its inventory management approach. The ambition was clear: ensure product availability, improve forecasting accuracy, and balance inventory levels within financial constraints.
How we helped: Data-driven inventory transformation
A deep dive data analysis of supply chain operations uncovered the root causes of stockouts and low service levels. Based on these insights, a structured inventory management and purchasing framework was introduced. Automatic inventory parameters, such as safety stock, reorder points, and target levels, were embedded into the ERP system to standardize replenishment and reduce reliance on manual planning. The forecasting algorithms were enhanced to better reflect volatile customer demand, supported by KPI monitoring and Power BI dashboards. These changes created a transparent, responsive planning environment that aligned inventory with market dynamics.
Results: Higher service levels, stronger customer loyalty
Service performance improved greatly, with A-category product availability rising from 75% to 95%, reducing stockout-related lost sales. Inventory and purchasing processes became more efficient by balancing stock levels within budget while supporting revenue growth. More reliable product availability led to more loyal customers: the recipe for sustained success in a competitive market.
Looking to optimize your inventory and secure customer trust? Contact us today to learn how we can help you.
