How We Raised a Multinational’s Service Level to 90%

Introduction

Our team took on the challenge of transforming the logistics and inventory management of the Brazilian subsidiary of an American multinational. The company faced significant operational limitations that affected customer service quality. Through customized, data‑driven solutions, we not only exceeded the established goals but also created a sustainable efficiency model.

Challenges Identified

  • Inaccurate sales forecasts: Reliance on quarterly averages made it difficult to adapt to seasonal fluctuations.
  • Insufficient safety stock: Warehouse constraints led to frequent stockouts.
  • Inadequate service level: Partial order fulfillment resulted in low customer satisfaction.
  • Inefficient processes: Lack of clear metrics and underperforming suppliers hindered operational performance.

Solutions Implemented

  1. Metrics Redesign: We redefined how customer service levels were measured, using broader and market‑aligned criteria.
  2. Demand Forecasting: We implemented a robust forecasting program based on historical data, reducing inconsistencies and optimizing replenishment.
  3. Inventory Adjustments: We developed strategies to balance lead times and operational costs while ensuring the availability of essential products.
  4. Modernized Purchasing Department: We restructured processes and replaced underperforming suppliers to increase agility and reliability.

Results Achieved

  • Service Level Improvement: Within 15 months, we reached a 90% customer satisfaction rate, surpassing the company’s targets.
  • Sustainable Integration: After 3 years, efficient inventory management and forecasting practices were fully consolidated, preparing the subsidiary for integration with the global system.
  • Long‑Term Impact: Improved customer satisfaction and operational efficiency created a solid foundation for sustainable growth in Brazil and alignment with the headquarters.

Transform Your Company’s Future

If your organization faces challenges in logistics, demand forecasting, or inventory management, contact us and discover how to turn obstacles into opportunities for growth.