Optimal Velocity reduces raw material waste and optimizes inventory to reduce short shipments.

A specialized food producer was struggling to manage service level and waste of its perishable products. When inventory was too low, customers complained about on-time delivery and shortages. When inventory was too high, product went out-of-date.

Utilizing Optimal Velocity’s Demand Forecaster™ and Inventory Optimizer™ a future-looking forecast was generated and inventory levels set for both raw materials and finished goods. Raw material inventory was reduced by 50%, resulting in a reduction of inventory carrying costs of more than $180,000 annually. In addition, they reduced short shipments by 70% resulting in $500,000 of additional sales in just 3 months.