TPG worked together with the client to increase inventory accuracy, re-implementing SOX compliant location controls and transaction controls, and a cycle count program to sustain the following results:
- $7.67 in annualized cost savings
- Recovery of $22.2M in working capital from inventory discrepancies
- SOX compliance on inventory controls – mitigating potential audit scrutiny risks
- Increased capacity for additional governmental contracts without increasing labor
Figure 1: Inaccurate Inventory
Count (millions $USD)