A German CPG Firm Reduced Inventory Costs and Freed-up Millions in Working Capital Using Inventory Optimization | Quantzig’s Recent Success Story Explains How

A global data analytics and advisory firm, Quantzig, that delivers actionable analytics solutions to resolve complex business problems has announced the completion of their latest success story. During the course of this engagement, the analytics experts at Quantzig developed and implemented an inventory optimization model to help a CPG firm overcome their challenges and free-up working capital.

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Inventory Optimization for a German CPG Firm (Graphic: Business Wire)

Inventory Optimization for a German CPG Firm (Graphic: Business Wire)

Being an essential part of the modern supply chains today, inventory optimization helps prevent stockout and overstock scenarios. Along with determining the right inventory levels that have to be maintained across different nodes in the supply network inventory optimization is proven to help businesses drive profitability.

With multiple M&A’s in the CPG sector, businesses are focusing on rationalizing their supply chains and inventories. Though CPG players have realized that their competitive advantage relies on end-to-end supply chain management. Yet often they do not have the required domain expertise to properly tune their supply chain, missing opportunities for improving business outcomes.

The Business Problem: The client is a leading CPG industry player based out of Germany. With multiple warehouses spread across Western and Central Europe, the client faced several challenges that created roadblocks in maintaining adequate inventory levels and in transporting the ready-to-ship products from their global manufacturing hubs to the local distribution centers.

Are you facing similar challenges due to frequent inventory stockouts? Our inventory optimization experts can help you build a robust model to maintain adequate inventory levels. Contact us for more insights.

“The underlying drivers of inventory such as demand and supply variability are common to all supply chains and have made inventory optimization applicable to every industry,” says a supply chain analytics expert from Quantzig.

The Solution Offered: The challenge, in this case, was to determine the adequate inventory levels across different nodes in the supply network. Quantzig’s supply chain experts developed and implemented an inventory optimization model with various service constraints and all the costs incurred by the organization. This comprehensive approach to inventory optimization was carried out in two phases with differentiated service levels and multi-echelon inventory optimization solutions that helped the client to determine the adequate inventory levels.

Don’t you think inventory optimization is a key driver of supply chain efficiency and corporate profitability? Request a free proposal to know more about the benefits of customized inventory optimization solutions.

Quantzig’s inventory optimization solutions helped the client to:

  • Identify 45% savings in inventory holding costs
  • Maintain their operating inventory levels to support demand and free up $2M in working capital
  • Request a free demo to know how our supply chain analytics solutions can help you drive profitability.

Quantzig’s inventory optimization solutions offered predictive insights on:

  • Minimizing the number of cross-docking points to meet SLA's within particular zones
  • Identifying opportunities for improving business outcomes
  • Our analytics dashboards can help you manage inventory while monitoring supply chain data in real-time. Request for more information to know how.

About Quantzig

Quantzig is a global analytics and advisory firm with offices in the US, UK, Canada, China, and India. For more than 15 years, we have assisted our clients across the globe with end-to-end data modeling capabilities to leverage analytics for prudent decision making. Today, our firm consists of 120+ clients, including 45 Fortune 500 companies. For more information on our engagement policies and pricing plans, visit: https://www.quantzig.com/request-for-proposal