Case study

Inventory optimization

Meeting customer demand and protecting profit margins

Apr 04, 2022
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.


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


monthly revenue increase


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.”

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MMBI special report:
2022 supply chain

Supply chain disruptions continue, with outsize impacts on smaller firms.