Case Study: a global chemical company reduces inventory carrying costs with Genpact

Global Chemical Company - Customer Case Study

Genpact partnered with a global chemical company to address its significant inventory management challenges. The client, which provides water treatment and process system solutions, was struggling with a 20% increase in inventory levels that was negatively impacting cash flow and profitability. Key issues included a lack of inventory monitoring, inaccurate data in its ERP systems, and reliance on experience-based forecasting.

To solve this, Genpact implemented a two-phase solution. The approach involved setting up new ordering and stocking policies within the ERP system and establishing a sustainable process for continuous monitoring and control. This included a new inventory classification model, standardized reporting, and extensive training for the supply chain team. As a result, Genpact helped the client achieve a 27% reduction in on-hand inventory carrying costs and increased its inventory turns from 8 to 9, significantly improving cash flow and operational visibility.