+2K
Employees globally
Transforming a Global Machinery Manufacturer Through Inventory Management Excellence
A leading industrial machinery manufacturer faced mounting inventory costs and extended delivery times that were threatening its ability to compete. Working alongside the company’s own team, EFESO restructured operations across engineering, supply chain and assembly to unlock working capital. The transformation established new operational capabilities while maintaining premium quality standards.
Industrial Manufacturing
Packaging
Cost and Value Engineering
Digital & Ai
Manufacturing
Operations Strategy and Transformation
R&d and Product Profitability
Supply Chain
Our Client
The company is a globally recognized manufacturer of industrial machinery. It designs, engineers and manufactures advanced production lines, modules and automation packaging equipment–primarily for fast-moving consumer goods and process industries. With a track record in innovation and premium quality, the company maintains a strong focus on R&D, serving a diverse portfolio of international blue-chip clients.
40+
Countries covered
€600M
Annual sales revenue
The Challenge
The manufacturer faced numerous operational challenges that threatened its financial health and market position.
- Excessive Inventory Levels: Finished goods, components and spares inventories consistently exceeded targets, immobilizing capital, increasing obsolescence risk and crowding warehouse facilities
- Extended Lead and Delivery Times: Customized orders, low demand predictability and sluggish production planning led to slow time-to-market and delayed fulfillment, threatening customer satisfaction
- Unpredictable Demand: An unstable sales pipeline, with frequent project changes, made production forecasting and procurement planning highly challenging. This also led to weak visibility for suppliers
Real Results Achieved Together
The transformation initiative delivered quantifiable benefits including an eighteen percent in overhead cost savings; through optimized planning, robust inventory control measures and strengthened cross-functional collaboration. Working alongside client teams, we established long-term operational improvements across the entire value chain.
+25%
Reduction in total inventory
30%
Faster lead times
+20pts
Fulfillment rate increase
Transformation Impact
- Established cross-functional collaboration processes between project management, engineering, supply chain, production and sales
- Developed standardized methods for assembly, testing and warehouse management, enabling greater flexibility
- Created forums for synchronizing activities and breaking organizational silos
Our Approach
The project was delivered in three main phases. Initially, we ran comprehensive diagnostics to analyze value streams, information flow and bottlenecks across production, engineering and logistics. The team then designed the target operating model, defining optimal inventory levels and key process changes.
Moreover, a modular approach has been introduced based on products lifecycle: from design until time to serve the Customers, the clock of the entire Supply Chain and Sales as been synchronized, with four distinguished production-service models that drive specific internal targets and service levels.
Implementation focused on engineering initiatives including BoM simplification through product range rationalization and Design 4 LT, to optimize lead time from assembly to installation. We partnered with procurement to roll out supplier integration programs, including vendor-managed inventory and just-in-time delivery.
The team introduced a Tier 1-Tier 2 supply base model for high-volume product families. Assembly and testing improvements included defining standard sequences for high-volume machines and implementing manufacturing execution tracking. Throughout, we conducted customized change management workshops to build awareness and train staff in new processes and tools.
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Facing Similar Manufacturing Complexity Challenges?
- Struggling with excessive inventory levels while maintaining customer service standards
- Seeking to reduce lead times without compromising your engineering excellence
- Ready to transform operations through proven methodologies and collaborative partnership
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