The manufacturing of consumer products involves the production and shipping of multiple product components through a product’s supply chain. If inventory for any one part is off, the production timeline for that entire product will shift. One thing that every consumer company does not want to have is low or zero inventory of their product. Many of the world’s largest automotive and computer companies rely on just in time inventory to ensure inventory levels are always maintained. Without an inventory of a finished product, your business is at risk, because, without inventory, you cannot deliver finished goods or meet incoming sales demands. Today’s story shows how a global consumer product company identified an inventory shortage within the product supply chain for a specific product part quickly.
This customer manufactures a product that is consumed throughout the country and requires hundreds of individual parts for the finished product to be manufactured and ready to be sold. With 100s of production partners throughout the world, maintaining an accurate inventory of all these parts is essential to the success of their U.S. based production line.
How a Consumer Product Company Identifies Inventory Shortage of a Product Part
At the end of April, this customer received an update from Outlier about a newly identified trend. The Outlier update indicated there was a significant decrease in the number of parts being shipped of a specific product part. This change could indicate several potential problems, including missing inventory, which was very concerning to the production team.
For this customer, it’s imperative that all of the component parts for a product be in-stock at the same time. If inventory levels for component parts vary, the flow of the production line will not maintain its efficiency. Production delays of one product, can also have a ripple effect, and affect the production of other products produced on the same line. Product part inventory issues do not only impact the production supply chain team, but the sales team is also equally interested in making sure that they have completed products to sell and distribute in accordance with their sales goals. When any part of the manufacturing and production process breaks, revenue is potentially compromised.
That’s where Outlier helped. Outlier saw the number of product parts being shipped from the warehouse to the production line had dropped significantly in April. The production team immediately sprung into action to check why the decrease occurred and worked to remedy it so as to limit delays to the production line.
This customer was motivated to correct the inventory issue quickly to limit the impact on their business. Without Outlier, the customer might not have noticed the outbound shipping variance for a few weeks or until the number of inventory on-hand on the production line had been more drastically decreased.
You can identify meaningful trends in your data with Outlier. Without Outlier, these kinds of insights would require hours, days, weeks or months of analysis. Outlier empowers businesses to take a deeper look at their data and uncover unexpected trends that can lead to revenue increases. Sign up for a custom demo to see how a global consumer product company identifies a product part inventory shortage in its supply chain.