O8 Case Study
Finished goods planning case study
How 3M used O8 Software to reduce finished-goods inventory by 60% across all sites while maintaining service above 97%.
- 30% reduction in on-hand inbound inventory
- 60% reduction in finished-goods inventory across all sites
- Service performance above the 97% target
3M managed finished goods through 5 hubs and 20 warehouses across Europe, with central planning and additional inbound supply to the factory. Stock targets had to reflect local demand, lead times, batch sizes, hub call-off patterns, and supplier replenishment constraints.
O8 Software supported a finished-goods planning model linking factory, suppliers, hubs, and warehouses. The design aligned stock policies across the network so local, hub, and inbound inventory were planned coherently rather than in disconnected layers.
The results were significant. On-hand inbound inventory fell by 30%, while finished-goods inventory was reduced by 60% across all sites. Service performance stayed above the 97% target. Process gaps between lean/pull methods and planning were eliminated, and productivity and communication improved across the supply chain.
“Working with O8 has put us back in control of the supply chain.”
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