How I Standardized Inventory Processes to Reduce Storage Costs and Stock Imbalances
Inventory Optimization & Operational Efficiency
Endothon, a fast-moving consumer goods distributor, was facing rising operational costs and growing customer dissatisfaction due to delivery delays and stock imbalances. I was brought in to design a scalable solution that would stabilize inventory, reduce penalties, and cut warehousing costs.
THE PROBLEM
Endothon has Warehouse Management System problems. While some warehouses are overstocked, others face stockouts, OTD failures, and highly variable storage costs. These problems increase operating expenses and decrease service for both Endothon and its strategic partnerships. An effective solution will decrease expenses, guard against supply chain disruptions to lower OTD failure, and improve service level by 15%
MY ROLE AND STRATEGY
I was tasked with developing a sustainable, data-driven solution to stabilize inventory, reduce delivery failures, and cut warehousing costs. The first step was standardizing the inventory system by establishing a 30-day baseline for Days on Hand (DOH), allowing a 15% buffer to account for normal fluctuations. To prevent stockouts and excess, I implemented automated reorder triggers within Endothon’s warehouse management system, improving responsiveness and reducing manual oversight.
On the delivery front, I introduced a 98% on-time delivery goal and created a system to track the root causes of any missed orders. This helped isolate issues related to inventory, transportation, and other operational disruptions. I also implemented a rolling forecast review cycle and fine-tuned the company’s safety stock models to better absorb demand volatility.
STORAGE COST REBALANCING
To address the growing warehousing expenses, I developed a classification system for inventory based on turnover rates. Slow-moving products were relocated to lower-cost distribution centers in regions such as Texas and Georgia, while high-demand items were prioritized for high-efficiency, high-cost locations. I built automation rules into the process to ensure inventory redistribution remained dynamic and aligned with evolving demand and cost structures.
PROJECTED IMPACT
These solutions were designed to deliver measurable results. On-time delivery failures were expected to drop by at least 15%, translating to more than $100,000 in recovered penalty fees. Storage costs began to decline across the board, particularly in premium locations like Los Angeles. Most importantly, customers experienced improved service through faster and more reliable order fulfillment, boosting satisfaction and brand trust.
OUTCOME
By turning fragmented logistics into a streamlined operation, this project gave Endothon a clearer path toward operational resilience. The improvements not only addressed immediate cost and delivery issues but also laid the groundwork for scalable growth through smarter forecasting, inventory discipline, and continuous process optimization.
