Minimizing Inventory Risks with Innovative Reporting

Minimizing Inventory Risks with Innovative Reporting

About the Client

The client is one of the leading foodservice distributors in the USA. They offer broad and innovative offerings to restaurants and foodservice operators pertaining to e-commerce, technology, and other business solutions.

 

Business Challenge

Being in the foodservice industry, most of the products that are distributed by the company have a limited shelf life. Thus, tracking the products that are reaching their expiry date is important. Lack of this visibility into the stock often leads to inventory write-offs, thus impacting the bottom line for the company.

The business wanted a tool that would track this information, helping them churn the products in the inventory and reduce their losses.

 

The Solution

A reporting solution was built to identify different at-risk products by category.

TekLink Consultants, in collaboration with the Business Partners, worked and developed the prototype, tested for its functionality, and finally rolled out into four test markets.

The solution involved:

  • Combining the data from the source master tables into a unified view for reporting consisting of all the active products, locations, and attributed about these products such as shelf life, product value, and others.
  • Developing an intuitive and functional reporting system that allows the switching between different risk metrics with the use of simple filters. The risk metrics could be total costs, discrepancies in expiration dates, nearest to expiration, and others.
  • Building a simple and yet effective user interface in Tableau that is considered both practical and easy to use.

 

Results and Benefits

  • The solution provided a method to quantify the value of the risk, identify the at-risk products with potentially invalid expiration dates to prevent any spoilage, and save costs.
  • This report also saved the employee time that was needed to retrieve and analyze the data by 50%.
  • The initial trials have shown the potential of nearly $500,000 in loss-reduction activities in one single market.
  • The project gave the teams much greater visibility into their warehouse and the associated risks. It also allowed the team to generate various continuous improvement ideas.

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