Insights
- The company was experiencing rapid growth into diverse international markets
- Multiple channels were adding complexity to the inventory conversion processes
- Sourcing, ordering, stocking and order conversion functions were “band-aided” together in an ineffective and costly process
- The inefficiencies were resulting in frustration, frequent process changes, cash flow issues and bulging inventories
Action
- Two Newport partners were engaged to craft and align a new “future state” business model for the forthcoming direction of the company
- Restructured processes to address flow inefficiencies and ensure scalability
- Redesigned and optimized each entity’s and channel’s processes to improve functionality
- Aligned employee inventory-related work flows, procedures and resources needed to support the new processes
- Developed inventory policies and procedures required for operational and financial control
- Determined appropriate level of operational oversight to ensure success
Results
- The initiatives established control over all aspects of the inventory conversion process throughout the company
- Revenues and cash flows were improved
- A 35% inventory reduction was achieved
- Sourcing selection, pricing and terms were upgraded
- Ordering consistency, accuracy and tracking was realized
- Inventory stocking accuracy and levels were enhanced
- Consistent operational management and oversight was attained
