Global Paper & Forest Products Manufacturer
From audit to execution, Amplio helped clear over $30M in excess inventory across 20 sites, cutting quarterly carrying costs by about $3M.
The challenge
Our client conducted a deep audit of their MRO inventory position with a leading software provider, and they uncovered the difficult truth that they had over $30M of excess inventory spread across dozens of sites.
Reducing that inventory position could net millions in carrying cost savings and in cash returns back to the supply chain, but they didn’t know where to start. Moreover, most manufacturers don’t have the in-house capability to execute complex disposition projects even when they have a basic roadmap.
Amplio’s solution
To start, Amplio’s AI Appraisal tool enriched the MRO audit with critical pricing and liquidity data from the secondary market. Combined with the information of what SKUs were dead stock, we were able to create a detailed analysis on the optimal disposition strategy for every SKU – keep, internally redeploy, retail, wholesale, or dispose.
Using data to create a disposition strategy is only the start for Amplio, though – we’re a turnkey solution to recovering maximum value from excess inventory. We prioritized sites with the client and then quickly removed it from warehouses and started selling.
The client immediately enjoys reduced carrying costs from our assumption of the inventory, and as we sell the inventory over time in diverse channels, we deliver 4x there turns they saw with a traditional provider.
The Results
- Gross sales over $2M, 6x previous return
- Removed ~$3M in quarterly carrying costs
- Cleared 20 sites of capital equipment and MRO
- Diverted 4,285 tons of CO2E from the atmosphere
The smarter way to handle surplus
Free up capital and warehouse space without bogging your team down. Our end-to-end solution handles the complexity for you.