Incorrectly stocked inventories not only lock up valuable cash but can also hide supply-chain process inefficiencies. To assist clients in unlocking working capital, our team of Genpact analysts—with experience in analyzing over 150,000 inventory SKUs worth billions—offers customized Lean Six Sigma solutions. We map the value chain within as-is processes to identify bottlenecks, establish sustained process visibility, and redistribute and optimize the inventory within the supply chain network.

 

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We begin by benchmarking inventory-management processes against best-in-class industry standards to establish metric baselines and improvement targets. Early emphasis is on identifying inappropriate inventory classifications, which can contribute significantly to suboptimal inventory levels. To right-size reclassified inventories, Genpact’s forecasting application, Pro-DETM relies on triangulation methodology to predict demand patterns typical to the customers’ business environment. Next, we help clients gain visibility into Key Performance Indicators, develop control models for working capital projections, exceptions to plans, and monitor the flow of inventory. Our holistic approach helps clients see inventory across their entire distribution network, no matter how many channels. In this way we can proactively predict and track inventory throughout its lifecycle and help clients better estimate risks of obsolescence. Once obsolescing inventory is identified, we can assist in liquidation through Genpact’s global network of partners.

 

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Helped an engineering major free $30 million through optimal inventory segmentation and by establishing visibility across the multiple echelons of its supply chain. Enabled an industrial major reduce $9 million of inventory by reducing supply-chain cycle times. Developed a forecast model based on Primary Customer Intelligence of a major services business to improve forecast accuracy by 13 percent and cut inventory by 20 percent.

 

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