Delphus Consulting Boosts Profits for Top Player via Inventory Strategy

Industry Leader Elevates Revenue with Delphus Consulting's Innovative Inventory Approach

Nuevo Leon, Mexico - August 30, 2023 / Delphus Consulting /

In the rapidly evolving world, companies continually grapple with challenges that require innovative solutions. One such company, a leading industry player with over ten national plants, recently faced a complex issue: managing a colossal working capital of approximately USD 38.42 million, distributed across 45,000 different products. Their challenge was to maximize efficiency and profitability, a task easier said than done.

Recognizing the need for expert intervention, the company turned to Delphus Consulting Group, a leading firm specializing in Supply Chain and logistics and Commercial Strategy. The fruitful collaboration between these two powerhouses resulted in a significant turnaround in the company's inventory management, leading to enhanced profitability and optimized working capital distribution.

Strategic Inventory Overhaul:

Inventory management is a critical component in the smooth operation of businesses, especially for a company as vast as this one. The company was dealing with a multifaceted challenge:

• Shortages of supplies and spare parts amounting to 9.2%
• On-site stock worth around USD 294,000 (1.1%)
• Excess inventory of approximately USD 706,000 (6%)

The objective was clear - elevate the service level by optimizing the working capital.

Enter Delphus Consulting Group, a seasoned player in the realm of Supply Chain and logistics, and Commercial Strategy.

The team at Delphus rolled up their sleeves and dug deep into the root of the issue, by:

• Analyzing and ensuring the quality of information
• Defining service agreements aligned with business objectives
• Designing and implementing inventory policies by location

But the strategy didn't end there. Delphus also:

• Facilitated the design and implementation of collaborative processes
• Enabled the creation of actions from global key performance indicators (KPIs)
• Implemented a replenishment model

This model was further fortified by:

• Aligning and managing warehouse operational practices
• Designing a collaborative management model among involved areas

Technological tools were incorporated into the mix, allowing for the definition of parameters and the design of a product-differentiated supply strategy with formal business criteria. This technology integration not only streamlined data analysis but also enhanced efficiency and effectiveness.

What is the result of this comprehensive and strategic approach? In the initial two months following the implementation of these measures, the company achieved a 9% reduction in shortages. Additionally, they managed to decrease their working capital by around USD 294,000and reduce their surplus by approximately USD 706,000. These impressive figures had a significant and positive impact on the optimization of working capital distribution.

Additional Information:

These results are not just numbers on a spreadsheet; they represent a tangible transformation in the company's operations. The collaboration with Delphus Consulting Group has illuminated the power of effective resource management and the importance of tailoring inventory policies to the unique circumstances of each plant and product. This success story is a testament to the transformative power of strategic planning and implementation.

About Delphus Consulting Group:

With over a quarter of a century of experience under its belt, Delphus Consulting Group has carved a niche for itself in providing specialized services in Supply Chain and logistics, and Commercial Strategy. Their expertise is particularly sought after in the food and beverage industry. Delphus is not just a consulting group; they are partners in progress, committed to delivering tangible results and innovative solutions. Their collaboration with a leading industry player is a shining example of how they help companies improve operational efficiency and profitability.

Contact Information:

For more insights into this success story or to understand how Delphus Consulting Group can help optimize your business operations, please reach out to Rogelio Ramos, CEO & CO-Founder at rramos@delphuscg.com or call him at +52 81 2558 0363

Don't let your business potential be hampered by operational inefficiencies. Visit their website at https://delphuscg.com/ to discover how Delphus Consulting Group can add value to your business.

Contact Information:

Delphus Consulting

Av. Lazaro Cardenas 214 1er Piso, Residencial San Agustin 1er Sector
Nuevo Leon, San Pedro Garza Garcia 66260
Mexico

Delphus Consulting
+52 81 2558 0363
https://delphuscg.com/