Client Challenges
- Quantity of stock began piling up in the warehouse
- Purchase managers made the wrong decisions on when, how and how much to order
- Customers are attracted to lower prices and hence profits are low
PKC Solutions
- Introduced ROLs and EOQs for various SKU.
- Developed sales forecast model to arrive at the purchase requirements.
- Designed and implemented appropriate Pricing strategies
- Conducted detailed diagnostics & eliminated extra purchase costs.
Results
- 21% Stock reduction
- 90% Accurate purchasing
- 17% Increase in overall net margin
- 12% Reduction in Purchase cost
- 18% Reduction in inventory holding cost
