Case Study: Global Telecommunications Provider achieves 6% forecast reduction, $2.9M in savings and 5% service-level improvement with Baxter Planning

How Baxter’s software and Baxter Best Practice Consulting helped them to achieve their goals

Baxter Planning partnered with a leading, US-headquartered telecommunications provider to tackle excess inventory that had built up under conservative stocking policies while preserving industry-leading service levels (target >97.5%). Using its Prophet software plus Baxter Best Practice Consulting, the firm performed a Comprehensive Assessment to prioritize initiatives tied to the company’s business goals.

Baxter implemented a global, trend-based forecasting standard and a Total Cost Inventory Optimization engagement that updated cost parameters to reflect product criticality, outage impact and regional site relationships. The changes produced projected benefits including a 6% global forecast reduction (cash-flow benefit of $1.9M), a 33% reduction in target stock levels, a 5% improvement in service level, an estimated $1M in carrying-cost savings, and an expected 18% reduction in purchases over the next four quarters.