Case Study

Optimizing a Company’s Inventory Conversion Rates Across Diverse Markets

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  • 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


  • 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


  • 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
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