Solution: Inventory Optimization
Clients: Inova e Milbra
The Challenge
Deciding when and how much to order of each material to meet production demands might seem easy.
However, if the goal is to keep inventory levels as low as possible while minimizing the risks of a stockout, this task becomes extremely challenging, even for the most experienced professionals.
Aside from the large number of items (in the hundreds for both clients in this case), what further complicates good inventory replenishment decisions are the uncertainties of demand and lead time.
The Objective
To safely reduce raw material inventory levels and free up working capital.
The Solution
A customized and integrated version of our inventory optimization solution, Mip Stock, including simulation support for making strategic decisions, such as choosing the optimal transport mode for international purchases.
Results
Beyond bringing significant consistency and automation to the procurement process, as of June 2025 (when this was written), we projected a 15% to 25% reduction in average inventory levels and much greater predictability for the finance and sales teams.