Case Study 3: Saving $35 Million Dollars
 With dual goals of decreasing inventory costs and increasing customer satisfaction, a leading telecom operating company decided their mission would begin with looking at the costs associated with material handling in terms of inventory, shipping and warehousing.
At the time, they were holding in excess of $40M in inventory. Their first proposal was to have an outside vendor start a transparent process by having them buy all the maintenance products, then supply them on an as-needed basis. That would mean that the company would generate a request through their call center to issue an order to the vendor to ship a new part to their technician, then receive the defective part for repair and restocking.
This process worked so well, that the firm approached TTI to take on the remaining inventory, as well as some other parts.
Upon completion of the project, the stock that was stored at our client’s many locations went from approximately $40M to less than $5M. Now our client has less than $5M in maintenance material supplies stored in 9 states. These supplies are for their larger customers who have an agreement for crash kits and maintenance parts to be onsite.
We reached our goal by exceeding our customer’s
goals: to decrease inventory costs while increasing their customer satisfaction ranking.
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