BeverageCo. struggled with the wastage of its end-of-life products at the central warehouse. In addition to its own products, BeverageCo. also sold third-party products. BeverageCo. assorted its products into seasonal, specialties, and sale-to-order segments. These products were often switched from one assortment to another based on their sales. Due to this practice, it become challenging for BeverageCo. to estimate their optimum inventory level, which led to product wastage in many instances or low-service level in some.

1. How does the current
order-replenishment
process work in the
organisation?
S U P P L Y C H A I N , F O O D A N D B E V E R A G E

2. KEY STATS
Economic order quantity
tool developed
Product categories analyzed
1
600

3. PROBLEM
BeverageCo. struggled with the wastage of its end-of-life products at
the central warehouse, sold 3rd party products; seasonal, specialties,
and sale-to-order segments. These products were switched from one
assortment to another based on their sales. Due to this, it become
challenging for them to estimate their optimum inventory level.

4. APPROACH – PHASE I
Map the current process and identify associated challenges
The stock replenishment process was mapped from order placement to
delivery using SIPOC and deployment diagrams. Using these tools,
cross-functional flowcharts were developed that described details of
the process along with the roles of involved departments.

5. APPROACH – PHASE II
Segmentation of products based on sales and demand
Conducted ABC-XYZ product segmentation based on sales % and their
predictability of demand. Products were divided into 3 groups and a
separate replenishment process SOP was developed including
recommended inventory level and stock monitoring interval.

6. APPROACH – PHASE III
Tool creation and user training
Created and validated a user-friendly, excel-based EOQ tool with a
user guide and technical documentation for BeverageCo. The tool
highlighted inventory turnover, holding cost, and service levels
achievable for any selected product category.

7. RESULT
Sprintly team provided BeverageCo. with a comprehensive
understanding of its replenishment process. In addition, a concrete
analysis tool was also provided to aid in accurate replenishment
decision-making. This project accelerated progress on BeverageCo.’s
inventory optimisation efforts by 6 months.

8. Effectively manage key operational activities
with our expertise
L A U N C H A P R O J E C T W I T H U S
W R I T E T O U S