One of the top 10 regional FMCG companies was facing low sales due to product availability issues at both distributors and retailers. Distributors invariably ended up with high unwanted inventory while most retailers stocked only 15% of the company's overall SKU portfolio. Miebach Consulting was asked to analyze and optimize the complete supply chain regarding SKU portfolio, distribution network and replenishment strategy.
Create pull replenishment processes for distributors and retailers
Develop multi-echelon distribution network
Optimize inventory levels through rationalization of SKUs
Increased sales of 5% due to increased sold product lines at stores
Reduced inventory level of 12% and increased value fill rate to 97%
Decreased inventory level at distributors to < 1 day