Cut inventory waste by 22% in one quarter

The Business

A plastic packaging manufacturer in Pune supplying FMCG and pharma customers. ~220 SKUs, 80 staff, and a single warehouse holding raw resin plus finished goods.

The business was growing 18% year-over-year but the owner was constantly arranging short-term credit to fund inventory. Something was off.

The Problem

Procurement was buying resin based on a six-month-old forecast and "gut feel." Finished goods sat in the warehouse for 90+ days on slower SKUs while top SKUs ran out of stock 3–4 times a quarter.

There was no single answer to "how much of which SKU should we have on the floor right now?"

What We Did

Ran an inventory turnover analysis by SKU class. Built a demand-forecasting model on 24 months of order data and seasonality.

Reset reorder points and safety stock per SKU. Set up a weekly dashboard showing inventory days of cover, slow-moving stock, and stock-out risk.

The Result

₹38L freed up in working capital. Stock-outs on top SKUs dropped 60%. 31 SKUs flagged for clearance pricing.

What Changed for the Owner

"We stopped paying interest on resin that was sitting in the warehouse. That alone covered the engagement four times over in the first year."