BPM

Inventory platform across 3 warehouses and 22,000+ SKUs cuts stock discrepancies from 23% to 4.1% and delivers $1.4 million in annualized savings for a distribution enterprise

Inventory platform across 3 warehouses and 22,000+ SKUs cuts stock discrepancies from 23% to 4.1% and delivers $1.4 million in annualized savings for a distribution enterprise Banner

Client Profile.

The client is a mid-market distribution and retail enterprise with three warehouses totaling 285,000 sq ft, 22,000+ active SKUs across eight categories, and 180+ supplier accounts. It serves a mixed B2B and B2C customer base, processes up to 3,400 orders a day at peak, and employed 27 full-time inventory staff when the project began.

Business Need.

The client ran its three warehouses on a 2011-era ERP, spreadsheet tracking, and a barcode setup with an 8.3% error rate. Stock updates took 6 to 8 hours to post, and mismatches between the ERP and the warehouse floor drove a 12.7% order cancellation rate. The client estimated those failures cost $620,000 a year in lost revenue and remediation.

Two deadlines made the problem urgent. The client planned to enter two new distribution territories by Q3. Its B2B customers, who account for 38% of revenue or $8.2 million a year, had contract audit clauses requiring cycle count accuracy of 98.5% or better within 12 months, with penalties that could force renegotiation.

Leadership had also told its board that a projected 60% rise in SKU volume over 24 months would be absorbed through technology, not headcount. After a four-vendor RFP, the client chose HitechDigital to deliver the automation and process re-engineering that goal required.

Challenges.

Solution.

HitechDigital deployed a three-tier inventory support platform across all three warehouses by Week 14, connected to the existing ERP through a custom API instead of an ERP replacement. The platform cut data sync lag from 6 to 8 hours to under 4 minutes, and 47 custom business rules now automate reorder calculations, safety stock adjustments, and shrinkage alerts.

Approach.

Technology Used:.

Custom API integration with the legacy ERP, hybrid barcode and Wi-Fi triangulation tracking, and a central data warehouse with sub-hourly refresh.

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