Read time: 3 minutes

How did Telenco bring inventory value down 11% in six months?

Answer:

By acting on coverage levels rather than issuing a blanket reduction target. A fixed setup applies the same safety margin to items whose demand profiles have nothing in common: it over-covers regular references and under-covers uncertain ones.

At Telenco, min and max levels are recalculated daily from the probable demand distribution of each reference, factoring in supplier lead times that reach 6 to 7 months on some products. Coverage tightens where demand is predictable and holds where the risk is real. That is the lever Telenco has pulled since go-live, where an across-the-board cut would also have thinned out the most uncertain references.

Looking to level up your Supply Chain with AI-driven planning?

Get a demo