Achieving Inventory Accuracy and Operational Efficiency

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Achieving Inventory Accuracy and Operational Efficiency

Client Overview

A chemical manufacturing company.

Deployed Capabilities

Financial Advisory
Regulatory Compliance

$2M Inventory Correction

Identified and corrected $2M in inventory discrepancies.

Cost Savings

Ensured accurate financial reporting and cost savings by mitigating potential losses associated with inaccurate inventory data.

Future Proof

Implemented a reliable and efficient inventory management system with enhanced data accuracy, optimized warehouse operations, and reduced operational risk.

The
Challenge

Our client faced a critical challenge with their inventory accuracy. After conducting several inventories, they found significant discrepancies that posed financial risks. Our client needed an accurate, reliable, and independent inventory observation to correct these discrepancies and avoid financial losses. Specifically, they needed to validate and correct the inventory data for materials stored across multiple locations.

The
Custom 
Solution

Sirius Solutions deployed a multi-disciplined team of inventory management and technology specialists to lead this inventory observation and data validation project. A thorough review and count of the inventory included the following:

An electronic inventory count sheet was developed to capture each inventory item by its product description and corresponding inventory code, ensuring accurate data recording and minimizing manual intervention.
Our specialists, coordinating with a warehouse worker and a forklift operator, conducted the inventory counts and reconciled their counts to confirm the final inventory counts.
Specialized techniques, including physical measurements and innovative technology applications for bulk inventory, were employed to ensure accurate volume calculations.
A final count sheet was uploaded into an inventory sub-ledger, and variances were analyzed with necessary adjustments to ensure data accuracy.

The
Impactful
Results

This project identified and corrected $2 million in inventory discrepancies, ensuring accurate financial reporting and substantial cost savings by mitigating potential losses associated with inaccurate inventory data. By implementing best practices for inventory management and conducting a thorough review, our client now has a more reliable and efficient inventory management system with enhanced data accuracy, optimized warehouse operations, and reduced risk of discrepancies and operational inefficiencies.

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