Case Study: Inventory Reduction From Integrated Demand Planning

Client Description

Major US Manufacturer


Major customers were unhappy with inventory levels (high and variable) while experiencing unacceptable level of stockouts. Client also had unacceptably high inventory levels with high variation. Commitment to fill all promotion orders contributed to excess cost in the supply chain.


Worked with client and a key retail customer to identify root causes and redefine work processes that would have high potential for reapplication with other major customers

TPG Approach

  • Worked with cross functional team to identify inventory drivers
  • Analyzed and recommended improvements to S&OP/Demand Planning Process
  • Integrated Demand Planning process into business planning at the customer level
  • Improved promotion planning process
  • Identified and addressed opportunities for process improvement at retail
  • Implemented improved CPFR process


  • Reduced average inventory levels at the retailer by 20%
  • Improved in-stock results by 200 basis points
  • Expedited disposition and handling of remnant packs
  • Created new order management process to minimize sales and buying involvement

Leave a Reply