Turning Supply Chain Volatility into Value: A PlanVida Success Story

We just casually reviewed inventory trends at one of our clients that implemented Planvida for their end to end supply chain planning. The image and the pattern over the years was quite revealing of the different factors shaping their supply chain journey.

Inventory on Hand was between 13 and 15 weeks before we started on the PlanVida journey.

🎯 Transformation Journey after the 2023 roll-out of PlanVida with full process alignment:

• Inventory turns improved more than 50%

• Positive cashflow impact with Working capital reductions

• Weeks of supply: Dropped from 13 weeks to 6.5 weeks

• Forecast accuracy: Increased to above 85% at the SKU-location level

With further refinements to their DTC forecasting model, the demand forecast accuracy improved to 90% consistently.

Inventory levels further improved with DOH between three to six weeks for most products and averaging about 4.5 weeks in 2024.

🗳️Phase 2: The Election Impact (January 2025)

Then came the 2025 Presidential Election. Trump's victory signaled potential tariff changes. A calculated decision was made considering the pros and cons of the tariff effect to build inventories to mitigate the Tariff impact.

Based on different modeling scenarios, calculated forward buys were made. This jumped the inventory to about ten weeks but still below the 2023 level pre-PlanVida rollout.

🌐 Phase 3: The Tariff Trade Reality (2025)

When new tariffs hit in early 2025, the market scrambled generally to react with price increases to pass on to the customers.

However, our client was proactive and methodically executed their strategy:

✅ Purchased key SKUs at lower landed costs

✅ Maintained competitive pricing while others raised prices

✅ Captured market share during supply disruptions

✅ Current weeks of supply: seven weeks (optimal for tariff environment)

The temporary inventory increase wasn't poor planning—it was strategic foresight powered by quant models and great planning acumen on the part of the client planners.

📈 The Bottom Line

Substantial Value Created:

💡Working capital optimization (2023 and beyond)

💡Navigating Tariff challenges and minimizing price increases (2025)

💡Improvement in inventory efficiency and turns

💡High Forecast accuracy with powerful quant models

💡Maintain higher in-stock rates throughout this supply chain volatility

Click here to learn how Planvida.Ai can help your business navigate uncertainty and turn market disruptions into competitive advantages.

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