Case Study: Fujitsu achieves a $146,000 reduction in minimum stocking cost and improved service levels with Baxter Planning's Prophet™

Fujitsu - Customer Case Study

Fujitsu, a leading information and communication technology company, was keeping one part in every field stocking location per contract to guarantee high service levels, regardless of demand history. That blanket stocking policy led to excess inventory and elevated inventory management costs, with many parts held at multiple locations despite little or no demand.

Baxter Planning Systems worked with Fujitsu to add three commodity codes, apply Prophet™ auto-replenishment and assign criticality ratings to each part, enabling new minimum stock rules across six field locations. The redesigned strategy cut minimum stocking costs by $146,000, slightly improved service level (from 94.058% to 94.268%), and created excess field stock available for redeployment or transfer to the DC to reduce future purchases.

Fujitsu