Manufacturing Company Reduces Inventory Costs by 28%

How a $2.1B manufacturer transformed their inventory management across 15 facilities, achieving $3.2M in annual savings while improving service levels to 99.2%.

Industry: Manufacturing

Company Size: $2.1B Revenue

Implementation: 6 months

Solution: GoodStock Pro

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The Challenge

This Fortune 500 manufacturing company was struggling with complex inventory challenges across their global operations. With 15 manufacturing facilities, 45,000 SKUs, and a complex supply chain spanning multiple continents, they faced significant operational inefficiencies.

Key Problems:

High carrying costs: Inventory represented 28% of total assets, tying up $580M in working capital
Inconsistent service levels: Stockouts were causing production delays and customer dissatisfaction
Manual processes: Excel-based planning was error-prone and couldn't scale
Poor visibility: Lack of real-time insights into inventory performance across facilities
Complex BOM management: Difficulty optimizing across interdependent components and sub-assemblies

"We were drowning in data but starving for insights. Our inventory management was reactive instead of proactive, and it was costing us millions annually." Operations Director

$580M

Inventory Value

45,000

SKUs

Facilities

94.2%

Service Level

The Solution

After evaluating multiple vendors, the company selected GoodStock Pro for its advanced AI capabilities, multi-location optimization, and proven track record with manufacturing companies.

Discovery & Planning (Month 1-2)

GoodStock's team conducted a comprehensive analysis of current inventory processes, data sources, and optimization goals. They mapped the complex BOM structures and identified key optimization opportunities.

System Integration (Month 2-4)

Integrated GoodStock Pro with existing ERP and WMS systems across all 15 facilities. Established real-time data pipelines and configured custom optimization parameters for their specific manufacturing processes.

Training & Go-Live (Month 4-6)

Comprehensive training program for 200+ users across operations, planning, and management teams. Phased rollout across facilities with continuous monitoring and optimization.

Key Features Implemented:

🎯 BOM-Aware Optimization

Advanced algorithms that understand component interdependencies and optimize across complex bill of materials structures.

📊 Multi-Location Analytics

Centralized dashboards providing real-time visibility across all 15 manufacturing facilities.

⚡ AI-Powered Forecasting

Machine learning models that account for seasonal patterns, supplier lead times, and production schedules.

🔄 Automated Replenishment

Intelligent reorder point calculations and automated purchase order generation based on real-time demand signals.

The Results

The implementation exceeded expectations, delivering significant improvements across all key metrics within just 6 months.

28%

Reduction in Carrying Costs

From $580M to $418M inventory value

99.2%

Service Level Achievement

Up from 94.2% baseline

$3.2M

Annual Savings

Net cost reduction achieved

$162M

Cash Released

Working capital freed up

Detailed Impact Analysis:

Financial Impact

$162M reduction in inventory value
$3.2M annual carrying cost savings
Improved cash flow and working capital
ROI achieved in 4.2 months

Operational Impact

99.2% service level achievement
67% reduction in stockouts
45% reduction in excess inventory
Streamlined procurement processes

Strategic Impact

Enhanced supply chain resilience
Improved customer satisfaction
Better supplier relationships
Data-driven decision making