SITUATION:

Newly-acquired $550MM PortCo operating in oil/gas sector sought assistance reducing inventory and improving working capital

ACTION:

Designed/executed process to alleviate inventory and solve root-causes driving excess inventory levels

  • Analyzed, segmented and identified current state for all inventory
  • Reviewed supplier agreements, met with suppliers to message initiative, negotiate buybacks, and explore w/c improvement strategies (consignment, VMI, etc.)
  • Developed PFEP (plan for every part) for raw material inventory, clarified and streamlined planning / scheduling processes
  • Analyzed FG inventory, developed pricing strategy to offload slow-moving inventory

RESULTS:

53% ($27MM) reduction
20% ($12MM) in 1st 90 days