Cost Saving – Surplus Inventory

//Cost Saving – Surplus Inventory
Cost Saving – Surplus Inventory2019-05-21T19:55:40+00:00

Company Overview: $1.5B Aviation Operator & Repair Center

Business Background & Facts

  • Large Helicopter operator and repair center
  • $400m in Inventory
  • $100m in Surplus inventory
  • Unfavorable cash flow for repair business

Solution Deployed

  • Create a separate group to manage surplus inventory globally
  • Identify all surplus inventory globally and tag them
  • Select external repair centers who can invest in overhaul surplus retables
  • Develop proper reporting for operation and finance
  • Bring speed to the execution
  • Sell directly to 2,200 global operators

Results delivered

  • Identified strategic partner for supplies inventory and sold $50M surplus inventory in first 18 month and recouped 80% of book value
  • Brokered planned large purchases and reduced product cost by 10%
  • Implemented procedures and training for company to manage surplus inventory
  • Outsourced warehousing, finance and other back office, saving company $19M annually