An Inventory Optimization Case Study

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  • Small/medium-sized wholesale distributor with 30,000+ items
  • Needed inventory strategy and optimal inventory levels
  • Dramatically improved both inventory and service levels

Goals and Objectives

When Belloc Group decided to concentrate and centralize inventory from its two warehouses into a single facility, it faced the challenge of determining an inventory strategy, optimal inventory levels and operating procedures for the new warehouse. Atos Origin, a leading international IT services provider, and ToolsGroup joined the project.

Optimizing the Inventory

The challenge was to identify stock levels that optimized service levels and reduced inventory costs. Atos Origin combined its logistics experience from similar projects with ToolsGroup’s SO99+ advanced statistical software for stock optimization. This project demonstrated how a partnership between Atos Origin and ToolsGroup allowed Belloc to define an inventory strategy that gave it a competitive edge.

Results & Benefits

By generating synergies through stock centralization and identifying and optimal inventory targets, Belloc was able to both reduce fixed assets and simultaneously improve service levels. Specifically they:

  • Improved service levels to 93%, nearly 25 points higher than prior to the project
  • Reduced inventory by 43%
  • Increased the efficiency of logistics operations
Belloc Group is an automotive and industrial vehicles parts supplier with annual revenue of$42 million and a portfolio of 33,500 items.