A national clothing and soft goods manufacturer with a packaging spend of $300,000 per year.
The client’s distribution facility was saddled with excessive and obsolete products. After many years of doing business with their previous supplier, their facility supplies and packaging SKU’s had proliferated to the point where there was little rhyme or reason for the products they were using. This led to a lack of space for efficient operations, storage of finished goods, or expansion.
How We Solved It
Massco worked with key stakeholders to implement a MMI Program (Massco Managed Inventory) which helped streamline their inventory management processes and removed several layers of complexity. In addition to implementing a managed inventory program, we also significantly reduced their on-hand inventory through SKU consolidations/ SKU rationalizations. These changes, in addition to some process improvements, helped lean up their operation and freed up precious cash flow.