PROBLEM
Finished good inventories worldwide were incurring excessive obsolenscence costs and unacceptably low inventory turnover.
SOLUTION
Linked distribution demand to manufacturing in conjunction with optimizing operations, scheduling and quality assurance functions.
IMPACTS
Results, in 3+ years:
–Working Capital: Generated $650M of cash flow benefits through 3x improvement in inventory turnover.
–EBITDA:>$100M reduction in product obsolescence costs.
–Order Service: 50% reduction in order cycle time.