Case Study

Chemical Manufacturer - Working Capital

Situation

  • Private Equity owned leading national distributor of industrial chemicals with multiple distribution centers
  • Client had excessive inventories resulting from inflated lead-times, poor demand visibility, and weak inventory management practices 

Actions

  • Redefined inventory parameters
  • Segregated seasonal products and created a tailored inventory strategy
  • Introduced economic order quantities
  • Developed a playbook of Best Practices to manage inventory positions and high-margin trade products

Results

  • Reduced inventory by $4.6M
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Argo, Inc is a global operations consulting company dedicated to implementing lasting performance improvements with offices in Chicago (US), Germany and Canada and an active presence in more than 20 countries. Specialties include: Lean Transformation, Six Sigma, Kaizen, Revenue Enhancement, Product & Process Innovation, Sales Effectiveness, Value Pricing, Supply Chain, Strategic Procurement, Network Optimization, Transportation & Logistics, Working Capital, VA/VE, Pre/Post Merger Integration, Training.