Case Study: a multi-national electronics components manufacturer achieves $30M inventory savings with Adexa MEIO

Multi-National Electronics Components Manufacturing Company - Customer Case Study

Adexa, Inc. worked with a multi-national Electronics/High Tech components manufacturer with facilities in North America and Asia Pacific. The company made products both make-to-order and make-to-stock, but its inventory policies and demand variability were not well aligned, leaving its finished goods coverage rule too high and creating excess inventory while missing service opportunities.

Adexa, Inc. used its MEIO approach to analyze inventory levels, usage patterns, WIP, finished goods, and demand variability across products, locations, and customer priorities. By recommending optimized inventory targets and adjusting weeks of coverage, the company realized an estimated $30 million in savings in WIP and finished goods inventory, while also identifying an opportunity to reduce average weeks of coverage by 0.25 to 0.50 weeks, worth about $3.5 million.