From Reactive Management to Proactive Orchestration of Inventory and Operations

Home

All Our Use Cases

Un chariot élévateur déplace de l’inventaire dans un entrepôt de détail.

The Overview

The Challenges

The Solution

The Benefits

In Distribution, Inventory Management Is More Than Logistics—It’s a Balancing Act

In the distribution sector, inventory management isn’t just about moving goods—it’s about striking the right balance.

Our client, based in Quebec, faced this reality every day. With perishable products, a wide assortment of SKUs, and seasonal demand spikes driven by trends, they were navigating significant supply chain complexity. On top of that, they had to serve customers seamlessly across a distribution center, multiple retail branches, and an e-commerce channel—all while optimizing warehouse space and cash flow.

Un gestionnaire et un employé examinent une livraison de marchandises et vérifient les détails.

The Challenges

Despite running on an ERP system (SAP), most decisions were still reactive, requiring frequent manual adjustments. The opening of new branches only added to the complexity, especially without historical data to guide planning.

The VP of IT turned to Talan to help transform operations, strengthen the teams, and optimize the tools already in place. Key issues included:

Overstock and Stockouts: Branches were overflowing with inventory, yet frequent stockouts led to lost sales and frustrated customers.
Overcrowded Warehouses: The distribution center was running out of space, creating significant logistical strain.
Organizational Silos: Limited communication between the distribution center and branches prevented coordinated management.
Low Confidence in Tools: Outdated ERP settings forced constant workarounds, creating tension between teams.

These problems directly impacted overall performance—wasting resources, weakening customer experience, and putting increasing pressure on financial results.

Addressing these structural and organizational issues meant rethinking inventory management and collaboration processes from the ground up.

The Solution

Talan stepped in with a tailored approach designed to meet the company’s specific needs while maximizing the value of its existing systems and resources.

To respond to these challenegs Talan deployed a structured and personalized approach:

Un employé d’entrepôt déplace des boîtes dans un grand entrepôt aux étagères remplies.

Two-Level Inventory Strategy

Branches: Automated reorder points for stable-demand products, plus precise forecasting for seasonal items.
Distribution Center: Demand-profile–based stock management to ensure optimal availability without excess.

ERP Parameter Optimization

Adjusted inventory settings to minimize manual interventions and boost system efficiency.
Scenario simulations (space requirements, supply effort, service levels) to validate and secure decisions.

Training & Collaboration

Team training on best practices to strengthen skills and autonomy.
Open communication channels between the distribution center and branches to break down silos.

Practical Integration

Embedded the new strategies directly into the existing ERP, minimizing disruption while maximizing operational impact.

The Benefits

Thanks to this structured and tailored approach, the new strategies quickly began transforming the company’s operations. Early analyses already revealed measurable gains, and projections validated with the teams indicate that the company could achieve:

Un employé d’entrepôt trie l’inventaire sur un ordinateur à l’aide d’un logiciel de gestion.

Inventory Reduction

Up to 41% reduction at the distribution center.
30–50% reduction in branch inventory value, while maintaining the required assortment.

High Service Levels Maintained

A 97–98% theoretical service level could be sustained, ensuring customer satisfaction without overburdening teams.

Operational Improvements

Sharp decrease in manual restocking tasks, freeing teams for higher-value work.

Rebalanced Inventory

Smarter stock distribution across branches, freeing up space and improving the in-store experience.

Stronger Trust and Visibility

Clear visibility into decision impacts gave teams more confidence, autonomy, and efficiency.

This client’s journey shows how a focused, collaborative approach can turn supply chain challenges into growth opportunities. By optimizing processes, empowering teams, and embedding sustainable practices, the company not only reduced costs but also gained a competitive edge in a demanding market.