RESEARCH TRIANGLE PARK, NC — MEMA Financial Services Group (MFSG) and Custom Technology Solutions (CTS) have jointly produced a free webinar showcasing a case study on inventory optimization. The webinar, hosted by The Catevo Group, will illustrate how aftermarket suppliers can improve profit by reducing inventory levels.
“How Optimizing Inventory Can Result in Significant Bottom Line Improvements” will address how aftermarket undercar parts manufacturer Coni-Seal was able to increase sales by nearly 32 percent and decrease inventory by 26.4 percent while maintaining high service levels.
According to Dan Pike, MFSG general manager, the webinar is ideal for aftermarket financial executives who wish to improve their bottom line profitability through better supply chain management practices.
“MFSG members, like other financial executives in the industry, are always looking at ways to become more financially healthy while reducing inventory levels and better managing assets,” Pike said. “Coni-Seal proved this goal is very doable and we believe other aftermarket suppliers can learn how they to can realize fiscal improvements.”
Coni-Seal recently announced the results of a focused inventory-management program launched in 2005 that it conducted with CTS Systems. Coni-Seal utilized CTS’ hosted application to analyze current and historical inventory levels with sophisticated data analysis and forecasting algorithms. It decided to embark on this aggressive effort because of its growing investment in inventory and its inability to accurately forecast dynamic customer demand, according to CTS CEO Nadeem Mazhar.
“Coni-Seal needed assistance managing its inventory which was growing rapidly which led to an inability to forecast accurately and accurately tie raw material procurement to customer demand,” Mazhar explained.
Mazhar will review how Coni-Seal was able to track its inventory, returns and procurement data on a nightly basis. CTS’ forecasting methodology then looked at month-to-month history of SKU velocity, aggregate demand and frequency along with currency of the demand for every SKU.
“Executives can measure the effectiveness of the inventory management application by viewing key performance indicators (KPIs) over their desktops,” Mazhar added. Examples of KPIs include gross margins, revenue changes, turns, GMROI, service level and inventory investment level.
Mazhar noted that Coni-Seal was successful due to its collaboration with its customer base. The supplier is now able to help its customers manage undercar part inventories at their warehouses, which further improves the efficiencies of the supply chain and has helped them improve service with their customers.
Following the presentation of the case study, Pike will moderate a question and answer session for attendees.
The case study on inventory optimization and deploying the right inventory at the right location will be the focus of a webinar to take place Tuesday, June 19 from 2 to 3 p.m. (EDT). Those interested in attending the webinar should send an e-mail to [email protected]. Log-in information will be provided prior to the webinar.
