Case study

Inventory Optimization

Meeting customer demand and protecting profit margins

Apr 05, 2022
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Supply chain Business strategy

A U.S.-based, middle market auto parts manufacturer with approximately $200 million in annual revenue sells to distributors both nationally and in 12 countries across Europe, Asia/Pacific and Latin America.

$14M

inventory opportunity, EBITDA of $1M in first two years

~$1.5M

monthly revenue increase

97%

customer satisfaction rating

As the company experienced rapid growth over the past several years, its existing operations couldn’t keep up with its expanding business needs. Global supply chain disruptions beyond its control added even more unprecedented and unforeseen obstacles. The company chose RSM to help it overcome its supply chain and organizational challenges and build a firm foundation to meet customer demand efficiently and protect profit margins.

“Based on the recommended target stock levels identified, RSM helped the manufacturer identify an estimated inventory reduction of approximately $14 million, with an EBITDA impact of $1 million in the first two years.”