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Improving Cash Flow Through Smarter Inventory and Supplier Cost Optimization

Industry: Oil & Gas, Sustainable Energy

Service: Manufacturing

Service: Operational Excellence

Parallaxe

Our Client

A leading manufacturer of custom polyethylene managing complex maintenance operations, significant spare parts inventory, and high service supplier spend.

Parallaxe

The Challenge

The client faced profitability and free cash flow challenges driven by over $17M tied up in spare parts inventory, poor SAP data structures, and limited inventory visibility. Spare parts were not classified or easily searchable, master data governance was weak, and no standard methodology existed to manage inventory levels. At the same time, service supplier costs lacked structured sourcing and negotiation processes, contributing to year over year cost and inventory increases.

Real Results Achieved Together

Within weeks, the organization transformed data visibility, reduced costs, and unlocked working capital.

84%

master data made usable within 6 weeks

$2M

Inventory reduction

10%

Cost savings

Transformation Impact

  • 84% of spare parts inventory became searchable and actively managed
  • 84% of master data made usable within 6 weeks
  • ~$2M inventory reduction on track over 12 months
  • 10% cost reduction on in-scope supplier spend
  • Data enrichment completed in 6 weeks vs. typical 4–6 months
Parallaxe

Our Approach

  • Deployed AI toolkit to cleanse, enrich, and restructure ERP master data
  • Enabled large-scale searchability and usability of spare parts inventory
  • Implemented structured RFQ and competitive sourcing processes
  • Developed spend cube and supplier rate cards to drive cost reductions
  • Introduced governance frameworks and standardized inventory min/max tools
  • Launched COMPASSS smart search interface for maintenance parts
  • Improved decision making through enhanced data visibility and structure

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Facing Similar Challenges?

  • Unlock trapped cash in inventory
  • Improve supplier cost performance
  • Enhance ERP data visibility and control
  • Build sustainable inventory governance
Contact our experts

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