Global Food & Beverage Manufacturer Incorporates Quantzig’s Expertise to Incur 25% Reduction in Stockouts and Enhance Inventory Efficiency

Business Challenge

A leading food and beverage manufacturer, operating over 50 manufacturing sites across Southeast Asia and catering to over 200+ clients globally, faced mounting challenges in inventory management. With the majority of demand coming from North America and Western Europe, the company experienced high stock expiry, leading to substantial losses. Maintaining minimal inventory stock across its Southeast Asian manufacturing sites further exacerbated the issue, as it resulted in product obsolescence.

High Stock Expiry

Product Obsolescence

Supply Chain Agility

The seasonal demand patterns in North America, coupled with supply disruptions in Southeast Asia, created serious difficulties in maintaining supply chain agility. The company struggled to develop an effective inventory management strategy that could balance fluctuating demand and mitigate the risks of overstocking.

How Quantzig Helped

Quantzig addressed the client’s inventory challenges by implementing a targeted and data-driven approach. Firstly, the team built a mechanism to accurately determine the required inventory levels for each SKU at every warehouse. This allowed the company to align stock levels with demand, ensuring efficiency in inventory management across all locations.

For SKUs already present in the warehouses, Quantzig designed a system that raised flags based on available shelf space. This proactive approach helped the company avoid potential overstocking issues, ensuring that inventory levels remained optimal and reducing the risk of product expiry. Furthermore, Quantzig introduced the capability to identify inventory that could not be sold at a specific warehouse. The team also developed a cost-effective solution for translocating such inventory to other warehouses, enabling better stock utilization and minimizing the losses associated with unsellable products.

Results & Impact

Quantzig’s inventory optimization strategy yielded remarkable results for the client. The company experienced a 24% reduction in losses attributed to product obsolescence and a 25% decrease in stock-outs. Furthermore, the solution provided near real-time visibility into inventory across the supply chain, empowering the client to make informed decisions and improve operational efficiency.