Case study: Inventory Visibility & Disposal Strategy for a Global Conglomerate
About the Client
The client is an American multinational conglomerate company that manufactures a variety of commercial and consumer products and provides engineering services and aerospace systems to major corporations and governments.
The client’s challenge was a large amount of inventory ($16m) in the form of raw material, work in process and finished goods. The client wanted to get clear visibility into inventory across different locations for industrial safety products along with inventory disposal strategy for value realization.
BRIDGEi2i partnered with the client to create a real-time dashboard for complete visibility across inventory classification, line of businesses, regions etc. An Inventory Optimizer solution was deployed; it used the proprietary algorithm to score the inventory severity and enabled identification of potential products which needed to be pulled from the non-reserved category into reserved inventory.
- The data engineering team at BRIDGEi2i started with data cleansing and quality management and then created master data. They also created a training set and test set for validation.
- The data engineering team exploded the SKU level plans and consumption into lowest level parts.
- BRIDGEi2i’s AI Labs experts created a segmentation of components into actionable groups based on commodity group and LT. An Inventory Severity Scoring Algorithm was developed for liquidation strategy. Another algorithm was developed to identify the potential products for movement from non-reserved to reserved.
- The consulting team and AI Labs’ experts implemented the Inventory Optimizer application which was able to perform re-balancing of inventory among different locations across North America. The data visualization experts created an interactive Tableau dashboard to enable visibility of inventory across marketing, sales, operations and finance.
The Inventory optimizer was able to address a significant portion of the $16m inventory in the form of raw material, work in process and finished goods