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Manufacturing

Recovering 28% Inventory Carrying Cost Through MRP Intelligence at a Process Manufacturer

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OVERVIEW

A Global Company Scaling Complexity in Process Manufacturing

A leading process manufacturer specializing in high-volume, multi-phased production operating across diverse product lines with variable demand patterns. The organization depended heavily on Material Requirements Planning (MRP) systems to manage the raw materials, intermediates, and finished goods across plants and distribution centers. With fluctuating demand, long lead times, and complex bill-of-materials (BOM) structures, maintaining optimal inventory levels was critical, yet increasingly difficult.

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CHALLENGES

Inventory Management Turning into a Liability

Despite having MRP systems in place, the organization struggled with rising inventory carrying costs and inefficiencies in planning. Over-ordering caused by static planning parameters and demand uncertainty caused the build-up of excess inventory. 

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Poor demand variability and seasonality handling reduced forecast accuracy and tied up working capital in excess stock

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Limited visibility into slow-moving, obsolete, and redundant inventory created MRP blind spots

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Misaligned procurement and production schedules led to inefficient replenishment cycles

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Increased carrying costs, constrained cash flow, and widespread operational inefficiencies