Case Study – Procurement

Overview

Maxstaff.co partnered with a retail client, a company that supplies essential goods and materials for various industries, including education. With a major school opening deadline in January 2025, the retail client sought to streamline its inventory management to ensure product availability, reduce stock-outs, and optimize inventory levels.

Challenges

The retail client faced several key challenges in its inventory management process:

1. Inconsistent Categorization: Due to subjective interpretations, different staff members categorized items differently, leading to mismatches and inefficiencies.
2. Multiple Contributors to the Master List: The master inventory list was managed by various individuals, causing data inconsistency and update delays.
3. Inventory Imbalance: Overstocking and stock-outs on specific items disrupted supply chain continuity, creating potential gaps in availability for high-demand items.

Actions Taken

Maxstaff.co’s consultant addressed these issues through a structured, multi-step approach:

1. Defined and Standardized Categories: Categories were clearly defined with specific main and subcategories to ensure consistency, such as “Furniture” with subcategories like “Office Chairs” and “Desks.”
2. Master File Review and Update: Each item in the inventory was reviewed for accurate details, including SKU codes, descriptions, and attributes. Missing or incorrect information was rectified to prevent misclassification.
3. Item Categorization Verification: Items were cross-checked to verify correct categorization, with similar items grouped to avoid redundancy.
4. Consistency Checks: Regular consistency checks were implemented, ensuring similar products across size, color, and function were accurately placed in their respective categories.
5. Inventory Optimization Strategies: Safety stock levels and Just-in-Time (JIT) ordering were adopted for items with variable demand, minimizing storage costs and overstocking risks.
6. Removal of Obsolete Stock: Slow-moving or outdated items from prior years were identified and removed to maintain an efficient inventory.

Results

• Enhanced Inventory Visibility: The retail client gained high-level visibility into sales performance and item demand trends, with summarized quarterly sales data from the past two years.
• Improved Stock Accuracy: Categorization improvements and obsolete item removal allowed the retail client to align upcoming purchases accurately with demand.
• Increased Customer Satisfaction: The system now enables customers to choose the correct items efficiently, which is expected to improve satisfaction and potentially boost sales.
• Optimized Inventory for January 2025 School Opening: Inventory levels were optimized to ensure all required items would be available in time for the school opening, reducing the likelihood of stockouts and over-inventory.

Conclusion

This project resulted in tangible benefits for the retail client, including optimized inventory levels, improved categorization accuracy, and increased customer satisfaction. Maxstaff.co’s data-driven solutions helped the retail client overcome inventory challenges, positioning them for greater operational efficiency and customer service excellence in 2025 and beyond.