Challenge:
Excess inventory of certain SKUs and frequent stockouts of high-demand products led to lost sales and increased carrying costs.
Solution:
A Lean Kanban system was implemented for real-time inventory management, ensuring better flow and replenishment. Hoshin Kanri prioritized inventory optimization as a key strategic goal, with the Balanced Scorecard tracking inventory turns and working capital efficiency.
Outcome:
- Inventory holding costs reduced by 25%.
- Stockouts of high-demand products dropped by 80%.
- $1.5 million in additional sales due to improved availability.