How a Fortune 500 Consumer Products Company Cut Channel Inventory from 70+ Days to 30–40
A Fortune 500 consumer products company in India had too much stock in its distribution channel, the wrong product mix and inaccurate forecasts. Anamind's Planning as a Service lifted forecast accuracy above 80% and brought channel inventory down to 30–40 days.
Industry: Consumer products · Business model: Manufacturing, sales and distribution · Region: India
What was getting in the way.
Stock was piling up with distributors while in-demand products ran short, and manual inventory work was taking the sales team away from the market.
Excess inventory
Channel inventory was above 70 days, with 8% slow-moving and obsolete stock.
Compromised range selling
The high channel inventory was often the wrong mix, limiting the availability of in-demand products and risking lost sales.
Distributors missing stock targets
Distributors struggled to keep to their agreed stock levels (ASL).
Low field sales productivity
Manual inventory management pulled the sales team away from the market, contributing to a 2% year-on-year decline in sales.
Cost of a new system
Implementing a new planning system meant investment, time and a learning curve for new tools and processes.
What Anamind put in place.
Anamind set up a solution focused on secondary sales forecasting, inventory planning and demand sensing.
A streamlined planning process run with expert analysts and advanced analytics, in close coordination with the company's internal teams.
Demand sensing reports gave detailed visibility of regional performance and product trends, and interactive dashboards highlighted what needed attention.
What changed.
- Forecast accuracy improved to over 80% through collaboration and advanced algorithms.
- More accurate secondary sales forecasts made the primary sales forecast more precise.
- Channel inventory fell to 30–40 days, with an optimised product mix.
- A robust, responsive planning capability that achieved the targeted outcomes.
“We've seen great results with this solution! It's improved our forecasting, collaboration, and decision-making, especially with its user-friendly interface and drill-down features.”
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