Reducing Inventory by More Than 50% Through a Strategic Vendor Managed Inventory Programme
Challenges
The customer faced rising inventory levels that increased working capital requirements while relying on excess on-site stock to buffer against supply chain risks. At the same time, late supplier shipments disrupted production schedules and limited visibility across multiple suppliers reduced effective inventory control, creating pressure to reduce stock to one week’s demand without compromising production continuity.
Our Approach
Vendor-Managed Inventory
B&H Worldwide deployed a Singapore-based VMI program where suppliers retain inventory ownership in a Free Trade Zone, reducing customer balance sheet exposure while ensuring supply continuity.
Inventory Visibility & Integration
FirstTRAC provides supplier-level tracking with a consolidated customer view, integrated with the purchase order system for improved planning and replenishment.
Just-in-Time Supply Execution
Weekly shipments deliver only near-term production requirements, minimising on-site inventory while maintaining operational continuity.
Results
- Achieved over 50% reduction in inventory holdings, significantly lowering working capital requirements
- Established a scalable supply chain model to support future growth and operational flexibility.
- Increased supplier visibility, improving coordination and decision-making across the network.
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