Executive Summary
For growing manufacturers, poor inventory flow directly translates to trapped working capital. A mid-market manufacturer faced sluggish inventory movement and operational bottlenecks that restricted cash flow. By undergoing traditional operational due diligence, rationalizing redundant SKUs, and implementing a structured Sales, Inventory, and Operations Planning (SIOP) framework, the company reduced its inventory by $22M and identified over $100M in working capital improvements.
The Challenge: Trapped Capital and Sluggish Flow
As the company grew, its lack of unified data strategy created severe financial and operational friction:
Sluggish Inventory Movement
Increasing revenue created production backlogs rather than profit, leaving massive amounts of capital tied up in slow-moving inventory.
Redundant SKUs
Over time, the company had accumulated a bloated catalog of redundant products that complicated the supply chain and diluted focus.
Poor Working Capital
Without a clear view of the cash conversion cycle, leadership could not unlock the capital needed for strategic growth or reinvestment.
The Solution: SIOP and Operational Due Diligence
The manufacturer engaged supply chain consultants to implement a rigorous, data-driven operational overhaul.
Measurable Outcomes
The structural improvements resulted in a massive injection of liquidity for the manufacturer:
The ABI Advantage: Accelerating the Path to Intelligence
While traditional consulting successfully uncovered these working capital improvements, the ABI Engine automates this exact level of financial clarity continuously.
CFO Clarity
ABI provides the CFO with a unified, real-time view of Cash Conversion Cycles and Working Capital, moving far beyond simple P&L statements.
Removing Bottlenecks
To fix “sluggish flow,” ABI utilizes “Little’s Law” and physics-based modeling to map the Lead-to-Cash process and identify the specific bottleneck limiting output.
Optimizing Throughput
By quantifying the “Cost of Delay”, ABI helps companies reduce Work-In-Progress (WIP) and increase billable utilization without the need for massive operational overhauls.