$500M+ consumer products company: $6M in warehousing and planning savings identified

Situation

A $500M+ consumer products company was paying for more warehouse space than its volumes required, and inventory kept climbing alongside it. Ownership wanted a hard number on the savings available and a plan to capture them. Cameo Consulting assessed the warehouse footprint, inventory position, and freight transfer spend between facilities.

Approach

• Baselined $30M in addressable warehouse spend, facility by facility.
• Modeled consolidation scenarios that matched the footprint to actual volumes and service requirements.
• Evaluated freight transfer spend between sites to confirm consolidation would not simply shift warehouse cost onto trucks.
• Analyzed inventory levels and traced them back to the planning decisions that created them.
• Built an S&OP improvement plan that connects forecasting, inventory targets, and capacity in one monthly cadence.

Results

• $3M in warehousing savings identified on $30M of addressable spend, 10 percent of the base, through consolidating the footprint.
• Another $3M in savings identified through the S&OP improvement plan, centered on lower inventory and tighter planning discipline.
• $6M in total savings identified across warehousing and planning, sequenced so ownership could execute in priority order.