Customer Story
Boise
How Much Can a Company Save by Reducing Inventory Waste?
Boise struggled with long transit times and idle inventory. Their goal? Reducing stock by 10% while improving on-time delivery. With the ToolsGroup solution, these goals were accomplished.
Results at a Glance
In the first year, Boise achieved more than double their inventory reduction target, cutting inventory by more than 20%.
Supply Insights
Made surprising discoveries about the true impact of variable supply
Faster Projections
Developed inventory projections in a fraction of the time it formerly took
Service-Level Focus
Now manage to service levels instead of inventory turns
Scenario Planning
Now can answer “what if” supply chain questions with confidence
Project & Objectives
The Boise team set out to reduce stock inventory by 10% while improving on-time delivery service levels. The project had a tight timetable to roll out office papers in four months and specialty papers, printing and converting a few months later. Optimal balance is a difficult process but one that can make a huge difference on the price and availability of paper products.
Solution
The ToolsGroup solution Inventory Optimizer was chosen as a key component of a new Sales, Inventory & Operations Planning Process (SIOP). The ToolsGroup solution captures daily sales history and extracts replenishment parameters. The system sets solve constraints – service levels and inventory minimums – based on service classes and then calculates safety stocks. It also predicts inventory requirements for SIOP planning.
The system also supports Boise’s product segmentation strategy, which allows them to focus their resources where they matter most.
We had one customer re-up because we could provide them service they couldn’t get anywhere else. And we accomplished it without increasing inventory or manufacturing capacity.
Benefits
In the first year, Boise achieved more than double their inventory reduction target, cutting inventory by more than 20%. At the same time, they improved service level by three full points, far exceeding their goal.
Some important benefits have been “unexpected”; gained from a more structured, scientific inventory planning and optimization process.
They include:
- Made surprising discoveries about the true impact of variable supply
- Developed inventory projections in a fraction of the time it formerly took
- Now manage to service levels instead of inventory turns
- Now can answer “what if” supply chain questions with confidence
