Case Study: a leading distributor company achieves $10M+ cost savings with Tredence inventory optimization

Recommended Optimal Inventory Mix Across Distribution Centre for a Leading Distributor Resulting in $10m+ Cost Savings

The client, a leading distributor company, faced critical space constraints and high costs due to non-performing inventory, which caused backorders for high-demand SKUs. Vendor Tredence was engaged to optimize the client's inventory mix and manage stock levels more efficiently.

Tredence implemented a solution that involved classifying SKUs based on key performance characteristics to create a tiered structure. This allowed the client to rationalize low-performing stock and optimize the mix of items held. The results included over $10 million in cost savings, a 4% increase in freed-up storage space, and a significant reduction in backorders, which improved customer SLAs and created room for new products.