Case Study

US based vitamin and nutritional supplement major reimagines its inventory management process through advanced inventory analytics

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Client: A leading vitamin and nutritional supplement manufacturer in US

Industry: Consumer products/nutraceuticals

Business need addressed: Traditional inventory management processes in the company resulted in poor visibility and control over inventory, causing high inventory levels in stock and, subsequently, higher working capital requirements

Genpact solution:
Genpact helped the client team optimize inventory management through Business Intelligence (BI) backed by advanced inventory analytics

Business impact:

  • Detailed dashboards and reporting enabled better inventory governance
  • Centralized data infrastructure enabled data quality, accuracy, and timeliness, and served as the platform for better inventory monitoring, analysis, and reporting

A US based manufacturer of vitamins and nutritional supplements faced significant issues with inventory control and visibility, as manifested in continually falling inventory turns over a five-year period, impacting working capital negatively.

Genpact helped the client reimagine its inventory management processes through process redesign, smart technology, and customized business intelligence and Data-to-Action AnalyticsSM.

Business challenge

The client’s existing inventory management processes were manual and ad-hoc in nature, with stages such as data gathering, reporting, and inventory analysis done with a high degree of manual intervention.

This was further compounded by loosely defined inventory control processes and governance practices, and limited use of data and analytics to enable decision making, which led to minimal visibility into relevant inventory metrics, lack of reporting accuracy, inability to adhere to timelines, and insufficient granularity of information regarding inventory management within the company.

Genpact Solution

The Data-to-Action AnalyticsSM loop enabled the company to generate insight and drive management visibility (the Data-to-Insight process) and then subsequently embed the insight into reimagined business processes to enable specific, granular actions that affect company effectiveness (Insight-to-Action) such that it can be used at scale to drive execution. The end-to-end process view across Data-to-Insight and Insight-to-Action can help design effective analytics solutions and provide targeted change management to embed them into business processes.

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We performed a diagnostic assessment to define the state of the processes and identify gaps in governance, decision methods, analysis and reporting and data quality, using Six Sigma and Lean principles.

Genpact mapped business and functional key performance indicators (KPIs) for inventory decisions. The right frequency for data capture and detail of data granularity was established.

We set up centralized data infrastructure to ensure data quality and to enable consistent analysis and reporting at scale to harness the data into insights.

New BI inventory dashboards were developed for accurate forecasting, with the involvement of all key stakeholders. Additionally, Genpact implemented a transformation blueprint for the end-to-end inventory processes and governance, including linkages with sales and operations planning (S&OP) and integrated business planning teams to iteratively improve decision making at scale, and in real time, through advanced analytics.

Business impact

Detailed dashboards and reporting enabled better inventory governance and a proactive process to review inventory status and link it to procurement.

The centralized data infrastructure enabled data quality, accuracy, and timeliness, and served as the platform for better inventory monitoring, analysis, and reporting in a standard and consistent manner. At the same time, our change management processes reimagined the structure of the inventory management team, with defined roles, responsibilities, and KPIs, while establishing critical links to the S&OP processes in the organization.

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