Distribution Center Optimizes 15,000 SKUs

How a regional distribution company optimized their complex SKU portfolio, reducing inventory value by 25% and improving cash flow by $2.1M while maintaining exceptional service levels.

Industry: Distribution / Wholesale

Company Size: $450M Revenue

Implementation: 4 months

Solution: GoodStock Pro

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The Challenge

This regional distribution company serves over 2,000 customers across multiple industries, managing 15,000 SKUs from 300+ suppliers. Their diverse product portfolio and complex demand patterns created significant inventory management challenges.

Key Problems:

SKU complexity: 15,000 SKUs with wildly varying demand patterns, from daily movers to slow-moving specialty items
Inventory imbalance: Overstocked on slow movers while frequently running out of popular items
Cash flow constraints: $85M tied up in inventory was limiting growth opportunities
Manual ABC classification: Outdated segmentation methods didn't reflect actual business value
Inefficient purchasing: Buying decisions based on intuition rather than data

"With 15,000 SKUs, there was no way to manually optimize inventory levels. We knew we had too much of some products and not enough of others, but we couldn't pinpoint where the problems were." Director of Supply Chain

$85M

Inventory Value

15,000

SKUs

300+

Suppliers

93.5%

Fill Rate

The Solution

The company chose GoodStock Pro for its advanced ABC analysis capabilities, multi-SKU optimization, and proven track record with distribution operations.

Data Analysis & SKU Segmentation (Month 1)

Performed comprehensive ABC/XYZ analysis across all 15,000 SKUs. Identified optimization opportunities and established data-driven segmentation based on revenue contribution and demand variability.

System Configuration (Month 2-3)

Integrated GoodStock Pro with ERP and warehouse management systems. Configured differentiated inventory policies for each SKU category with automated replenishment rules.

Implementation & Training (Month 3-4)

Rolled out optimized inventory policies across the portfolio. Trained purchasing and warehouse teams on new processes and analytics dashboards.

Key Features Implemented:

📊 Advanced ABC/XYZ Analysis

Dynamic SKU segmentation based on revenue contribution, demand variability, and profit margins.

🎯 Differentiated Policies

Customized inventory policies for each SKU category, from high-service A items to optimized C items.

🔄 Automated Replenishment

Smart reorder points and order quantities optimized for each SKU's demand pattern and supplier terms.

⚡ Portfolio Analytics

Comprehensive dashboards showing inventory health across the entire 15,000 SKU portfolio.

The Results

The implementation exceeded expectations, delivering dramatic improvements in working capital efficiency while maintaining strong service levels.

-25%

Inventory Value Reduction

From $85M to $64M

$2.1M

Cash Released

Working capital improvement

96.8%

Fill Rate Achievement

Up from 93.5% baseline

-42%

Slow-Moving Inventory

Dramatic reduction in dead stock

Detailed Impact Analysis:

Financial Impact

$21M reduction in inventory value
$2.1M cash released for growth
Improved inventory turnover by 35%
ROI achieved in 3.2 months

Operational Impact

96.8% fill rate achievement
42% reduction in slow-moving stock
Streamlined purchasing workflows
Better warehouse space utilization

Strategic Impact

Enhanced customer satisfaction
Improved supplier relationships
Data-driven decision making
Scalable growth platform

"GoodStock Pro gave us visibility and control we never had before. Managing 15,000 SKUs is now systematic and data-driven instead of chaotic. The $2.1M in released cash has been reinvested in growth initiatives, and our customers are happier with our improved fill rates."

Director of Supply Chain Regional Distribution Company $450M Revenue, 15,000 SKUs