Our customer is a leading distributor for organic baby food. Due to substantial growth over the past 2 years, inventory levels have been significantly increased. At the same time, our customer has been experiencing an increase in customer orders backlog and expired product in stock - both of which turned into a financial fiasco. If our customer wouldn't be able to improve their demand planning, drastically reduce inventory levels and thus, avoid product expiration, their business model would collapse within 6 months.
The Final Impact
Avoidance of write offs due to product expiration >$300K
Reduction of inventory levels and working capital >$800K