IMS implementation
Operations
The Challenge
The Client, a product-based company, was experiencing significant inventory bottlenecks, causing extended delivery delays and increasing customer frustration. The company's reliance on third-party warehousing and inventory management created:
Lack of transparency on actual stock levels
Inability to provide accurate delivery timeframes to customers
Inconsistent inventory forecasting
Cash flow challenges due to poor stock planning
Discrepancies between reported inventory value and actual stock holdings
The Approach
Matt implemented a comprehensive transformation of the inventory management infrastructure:
A/ Discovery & Analysis
Conducted a thorough audit of current inventory levels, discovering large discrepancies between reported stock and actual stock.
Mapped the existing order fulfilment process to identify key bottlenecks
Evaluated the cost-effectiveness of third-party warehousing versus in-house solutions
B/ Strategic Implementation
Transitioned from third-party warehousing to an in-house facility, giving the client direct control over inventory
Implemented a dedicated inventory management system for forecasting, purchasing, warehousing, assembly, dispatch, and order tracking
Established new standard operating procedures for stock management
Created a stock forecasting methodology to ensure adequate inventory levels
C/ Team Development
Hired a dedicated Warehouse Manager with clear responsibilities for inventory and supply chain management
Developed role-specific KPIs tied to inventory performance
Created training documentation for warehouse operations
Results
Improved transparency of stock levels, allowing for accurate delivery timeframes to customers
Enhanced cash flow management through better inventory planning
Reduced order-to-delivery timeframes
Established proper financial tracking of inventory assets in accounting systems
Built customer confidence through consistent product availability and delivery reliability
Created a scalable system that could support growth from $250k to $750k monthly revenue
All too often, leaders ignore systems that are clearly insufficient for the task due to the challenge of not having an obvious alternative. For the sake of confidence from the team, it is always worth investigating alternate pathways.
Key Insights
Transparency drives confidence: By bringing inventory management in-house, the client gained better visibility and control, which directly translated to improved customer confidence
System integration is crucial: Connecting inventory management with financial systems ensures accurate reporting and decision-making
Specialized roles matter: Creating a dedicated Warehouse Manager position with clear responsibilities ensured sustained focus on this critical business function