Demand Management

Household Products Manufacturer

Client

A multi-billion dollar U.S. manufacturer and marketer of household and personal care products leverages lean to eliminate seasonal inventory surges-freeing up over $1 million in working capital.

Challenge

Reduce demand volatility driven by seasonal fluctuations and decrease inventory levels in order to leverage current assets to support future growth.

Solution

A team of managers from the client and TBM Consulting Group analyzes demand patterns to determine more appropriate inventory levels, align production with customer demand and reconfigure packaging.

Result

The business unit immediately eliminates $1 million in inventory for a single product line, doubling annual inventory turns from 3.0 to 6.2 in the initial phase alone. Ultimately, inventory turns will increase to almost 11.