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Featured Case Study

How does a Fortune 500 company bring over a million dollars in savings to their bottom line?  They get inventory solutions from Intrinsic.

Henry Schein is the largest supplier to healthcare professionals in the world.  They produce $3.5 billion in annual sales to over 400,000 customers worldwide.  Henry Schein’s US distribution network consists of five regional distribution centers. 

Henry Schein has become the leader in their industry by providing superior customer service, necessitating their goal to fulfill over 90% of customer orders completely.  The company found it very costly to support their goal, as they carried over $160 million in inventory, and nearly 250,000 items. 

The company decided that in order to sustain their leadership position, they would have to enhance their profitability and cash flow without endangering their customer service goals.  In fact, Schein was hopeful of increasing customer service while decreasing their inventory and item count. 

It was decided that Henry Schein needed to get more sales from fewer total item/locations by optimizing the inventory deployment for each location to meet customer demand.  By understanding the demand for each location, the company could be assured to have the products in each location that best fulfilled customer orders.  Additionally, by removing slower or non-moving items, they could meet their inventory profitability goals.

Schein selected Intrinsic Value Chain Solutions to design and implement CLARITY, Intrinsic’s inventory deployment optimization solution for retail and wholesale. CLARITY analyzes the demand for each location, and determines the items that meet the customer service goals, and meet the inventory profitability goals of Henry Schein.

The benefits of inventory deployment optimization are proven.  Henry Schein sent carrying cost reductions of $600,000 right to the bottom line, and reduced freight cost by 9%, over $1.3 million – in just 6 months after implementation.  All while increasing customer service and securing their position as market leader.

The effects of improved inventory deployment are long-lasting.  Reducing carrying cost, freight, obsolescence and lost sales provide benefits your company experiences forever.  With a better mix, you can improve sales, cash flow and margin…and outpace your competition.