Situation
Newly acquired $550MM PortCo looking for help reducing inventory and improving working cap.
Actions
Designed and executed process to alleviate inventory and solve root-causes driving excess inventory levels.
- Analyzed, segmented and identified current state for all inventory
- Met with suppliers after reviewing agreements to message initiative, negotiate buybacks, and explore w/c improvement strategies (consignment, VMI, etc)
- Developed Plan for Every Part for raw material inventory, clarified and streamlined planning and scheduling processes
- Analyzed FG inventory, developed pricing strategy to offload slow-moving inventory
Results
20%
($12MM) reduction in 1st 90 days
53%
($27MM) reduction in 6 months
