33%
Reduction in inventory within 90 days, saving $4M.
Improving Working Capital Through Inventory Control: Enhancing Efficiency and Traceability for a Global Spirits Producer
Industry: Food & Beverage
Service: Operations Strategy and Transformation
Service: Procurement
Service: Supply Chain
Our Client
A global branded spirits producer focusing on regional specialty beverages in glass and PET bottles, seeking to optimize inventory and working capital efficiency.
The Challenge
The company faced significant inventory and working capital challenges that impacted operational efficiency and costs:
- Excessive raw material inventory, with days-on-hand 3–4 times higher than competitors.
- Space constraints due to inventory doubling, requiring third-party warehouse leasing.
- Weak inventory control, resulting in material losses and reduced traceability across the supply chain.
Real Results Achieved Together
Through targeted inventory control measures, EFESO helped the client reduce working capital requirements, improve traceability, and enhance operational discipline.
80%
Reduction in pallet space usage.
40%
Reduction in spending from one key supplier.
75%
Reduction in 3rd party warehouse fees
Transformation Impact
- Implemented perpetual cycle management and daily controls to sustain inventory improvements.
- Standardized inventory benchmarks across sites to guide consistent practices.
- Aligned demand and supply through SIOP processes, minimizing shortages and obsolescence.
- Improved collaboration with suppliers and internal stakeholders, enhancing traceability.
- Updated ERP master data and planning processes to automate and streamline operations.
Our Approach
EFESO applied a multi-faceted approach to reduce inventory and optimize working capital:
- Cycle Management & Daily Controls
- Linked one-time inventory reductions with ongoing daily management to maintain improvements.
- Standardization & Harmonization
- Established benchmarks to standardize inventory management practices.
- Aligned demand planning with incoming supply through the SIOP process.
- Supplier Collaboration & ERP Enhancements
- Developed strategies to strengthen supplier collaboration and traceability.
- Facilitated cross-functional cooperation between Materials Planning and Procurement.
- Updated ERP master data fields to enhance automation and MRP efficiency.
Related Services
Operations Strategy and Transformation
Helping organizations rethink how they create value. We strengthen performance, build resilience, and accelerate growth across every layer of your business.
Procurement
Material costs and supplier volatility threaten profitability. We unlock savings through strategic sourcing, supplier collaboration, and digital procurement transformation.
Supply Chain
Supplier complexity obscures 70% of your value creation. We strengthen networks through supplier development programs, risk mitigation strategies, and collaborative innovation platforms.
Facing Similar Challenges?
- Reduce excess inventory and optimize warehouse space.
- Strengthen inventory control, traceability, and supplier collaboration.
- Improve working capital efficiency and support growth objectives.
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