Turning Chaos into Cash: How We Fixed a Messy Inventory for a $600M Service Provider

Running a mid-sized manufacturing company brings its share of headaches. You’re juggling $50 million to $500 million in annual sales, keeping plants humming, and praying your cash flow doesn’t dry up.

For one regional service provider pulling in $600 million a year, the problem hit hard. Their inventory accuracy sat below 66%. Paper-based processes and a single annual count left them guessing. Accounting mismatches piled up, costing over $20,000 a month in variances. Engineers grumbled. Operators tripped over stock-outs. Accountants pulled their hair out. Sound familiar?

Let’s dive into how we transformed that mess into a money-making machine, achieving cost reduction, improved cash flow, risk reduction, and even a nod to commodity hedging strategies.

The Starting Line: A Recipe for Disaster

Imagine this. Your stockrooms look like a scavenger hunt. Truck stock? A wild card. The company relied on outdated methods. Paper trails vanished. Annual counts missed the mark. The result? Less than 66% inventory accuracy. Accounting and ledgers didn’t match. Every month, $20,000 slipped through the cracks. Engineers blamed operators. Operators pointed at inventory managers. No one knew what they had or where it went. Risk grew. Profits shrank. This wasn’t just a headache. It threatened the bottom line.

The Fix: Smart Moves, Real Results

We rolled up our sleeves. First, we launched a cycle count program. Teams checked the storerooms and truck stock regularly. No more waiting for that once-a-year panic. Next, we brought in SharePoint. Every transaction got tracked. An audit trail emerged. Accountants breathed easier. We tackled obsolete inventory, too. A deep dive revealed $300,000 in slow-moving stock. We cleaned it up. Root cause analysis pinned down stock-outs and non-conforming materials. Problems didn’t just hide. They got solved.

The numbers tell the story. Accuracy jumped from under 66% to over 94% in stockrooms. Truck stock accuracy doubled from 25% to 50%. Obsolete inventory dropped by $300,000. Audit readiness? Night and day. But the real win? Frustration vanished. Engineers stopped cursing missing parts. Operators moved faster without stock-outs. Accountants smiled at clean books. This wasn’t just about numbers. It was about people working better.

Why This Matters to You

As a CEO, CFO, or owner, you know cash flow keeps the lights on. Cost reduction frees up dollars for growth. Risk reduction protects your future. This case illustrates how inventory accuracy ties everything together. A 28% accuracy boost cuts waste. Clearing $300,000 in dead stock boosts cash flow. Fewer stock-outs reduce downtime. Less risk means smoother audits. We’ve done this before. Check our service page for proof. We specialize in turning chaos into profit.

The Bigger Picture: Hedging Your Bets

Let’s talk commodity hedging strategies. Raw materials swing in price. Steel jumps. Fuel spikes. A $650 million company feels that hit. While this case focused on inventory, our approach extends to hedging. We analyze trends. We plan ahead. You can lock in costs and stabilize cash flow. Imagine dodging a 20% price hike. That’s money in your pocket. We’ve guided companies through this. It’s part of our toolkit.

A Funny Side Note

Here’s a laugh. During the cycle counts, one operator found a toolbox lost for years. Inside? A sandwich wrapper from 2018. The team joked it was the secret to inventory success. True story. It lightened the mood. A little humor goes far when you’re digging out of a mess.

How We Do It

Years of experience back this up. We’ve worked with manufacturers like you. Plants with multiple sites. Revenues from $50 million to $500 million. Unique challenges? We’ve seen them. Stock-outs. Obsolete inventory. Mismatched books. Our process works. Cycle counts. Digital tracking. Root cause fixes. We cut costs. We improve cash flow. We reduce risks. Profits follow.

Take Action Now

Don’t let inventory drag you down. A 66% accuracy rate isn’t a badge of honor. It’s a warning. Start with small steps. Check your stockrooms. Track transactions. Clear dead inventory. Need help? We’ve got your back. Visit our service page to see how we can boost your bottom line.

Reduce Stockouts, Boost Accuracy

Stock-outs kill momentum. This case slashed them with root cause analysis. Accuracy hit 94%. Your production line deserves that reliability. Operators move faster. Customers get orders on time. Cash flow improves. It’s a win across the board.

Cut Obsolete Inventory

That $300,000 in slow stock? Gone. Obsolete inventory ties up cash. We found it. We removed it. You can too. Free up funds for what matters. Invest in growth. Pay down debt. The choice is yours.

Your Next Move

You run a tight ship. But even the best captains need a crew. We bring expertise in cost reduction, cash flow improvement, risk reduction, and more. From inventory accuracy to commodity hedging strategies, we deliver. Ready to transform your operation? Let’s talk. Check out our services.