Electronics Manufacturer uses Warehouse and Inventory Management Solutions for Real-Time Visibility and Optimizing Global Supply Chains with Quantzig

Business Challenge

A leading electronics manufacturer with over 50 manufacturing sites and more than 200+ clients faced significant inventory management challenges due to the global distribution of its operations. With manufacturing spread across Southeast Asia and the majority of demand originating from North America and Western Europe, the company experienced inventory overholding in some warehouses and stock-outs in others.

High Stock Expiry

Product Obsolescence

Supply Chain Agility

The client faced significant challenges due to its globally distributed manufacturing operations, which required maintaining minimum inventory levels to avoid supply disruptions. This approach led to product mishandling, resulting in losses. Additionally, the seasonal demand fluctuations in North America, combined with frequent supply disruptions in Southeast Asia, created serious difficulties in maintaining supply chain agility and developing an effective inventory management strategy.

How Quantzig Helped

Quantzig collaborated closely with the client to address their inventory challenges by implementing data-driven solutions tailored to their needs. The key interventions included:

1. Inventory Allocation Mechanism:: Quantzig developed a mechanism to determine the precise inventory levels required at each warehouse for every SKU, ensuring optimal stock levels across the network.
2. Flagging System for Checkout Requirements:: For SKUs already stored in warehouses, Quantzig introduced a flagging system based on checkout requirements to proactively manage stock movement.
3. Cost-Effective Inventory Translocation:: Quantzig identified unsellable inventory in specific warehouses and devised cost-efficient methods to translocate it to locations with higher demand potential.

Results & Impact

Quantzig's solutions improved inventory management, resulting in a 24% reduction in overholding losses and a 25% decrease in stock-outs, boosting order fulfillment. The near real-time visibility into inventory enhanced supply chain agility and decision-making, streamlining operations across the global network.