An Inventory Optimization Case Study

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  • Chemicals inventory planning and optimization
  • Fast integration to SAP ERP transaction system
  • Immediate impact on inventory and service level

Project and Objectives

TFL Italy implemented ToolsGroup’s SO99+ solution in an aggressive finished goods inventory planning and optimization project that would systematically address its entire production and distribution network. The company’s aim was to reduce inventory holding costs, while maintaining a high level of service.

SO99+ is integrated with TFL‘s SAP R/3 transactional system. The integration was achieved as scheduled by ToolsGroup, with relatively minor involvement of TFL resources, according to the IT Manager. 

Results & Benefits

TFL was able to reduce inventory and increase service levels after just one month. In the light of the success obtained with this implementation, TFL added a second SO99+ system. As a result of these two projects, TFL:

  • Increased its global service level by 3.5%
  • Reduced its finished goods inventory by more than 22 percent
  • Reduced average inventory from 90 days to 70 days.
The German chemical company TFL spans 90 countries, with 15 branches and eight production plants throughout Europe, Asia and the Americas. TFL develops, produces and markets chemical products for the tanning industry, and provides associated services. Its annual sales are above 360 million USD.

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