Enhancing inventory management to drive growth and efficiency
Like many, a leading retail automotive services company faced supply chain disruptions that led to stockouts, missed sales, and over-ordering to accommodate unpredictable supply. Local store managers relied on experience rather than a strategic framework and data. Seeking a trusted partner, they turned to West Monroe for a data-driven solution to identify targeted portfolios and stocking levels.
Together, we built a smarter portfolio and inventory strategy, using predictive analytics on both internal and external data to align store-level inventory with demand. Our collaboration resulted in streamlined inventory processes, fit-for-purpose analytical tools, and improved decision-making capabilities. In just months, our client reduced working capital by 25%, gained $24 million in EBITDA from lost sales capture and COGS (cost of goods sold) optimization, and identified $50 million in potential EBITDA from market share growth.