Background
In the consumer packaged goods (CPG) industry—particularly pulp and paper manufacturing—maintaining operational continuity requires precise coordination of MRO inventory across large, distributed networks. At the same time, organizations face increasing pressure to reduce working capital, optimize procurement, and standardize operations following growth and acquisitions.
For this Fortune 500 manufacturer, MRO inventory and procurement had become highly fragmented. Decentralized purchasing decisions, inconsistent data across systems, and misaligned inventory policies created inefficiencies across the organization. Excess inventory accumulated in some locations, while other sites faced stockout risks—driving both cost and operational risk.
The organization needed a way to unify its data, centralize decision-making, and optimize inventory and procurement strategies across all facilities—without disrupting existing systems or requiring a costly data cleansing effort.
key results at a glance
$59M
Total Identified Inventory Opportunity
$27M
Stocking Policy Optimization
$17M
Overmax Reduction
$10M
Parts Sharing Across Sites
$3M
Purchase Price Variance
$2M
Vendor Managed Inventory
Industry Context
Pulp and paper manufacturers operate in capital-intensive environments where downtime, excess inventory, and inefficient procurement directly impact margins. These organizations often manage large volumes of MRO materials across multiple facilities, making visibility and coordination critical.
As companies grow through acquisitions, MRO data becomes fragmented across ERP and CMMS systems. Inconsistent material definitions, supplier data, and inventory policies make it difficult to standardize processes or optimize spend. Without a unified view, organizations struggle to balance service levels with cost control, often leading to excess working capital and missed opportunities for efficiency.
The Challenge
The organization faced several interconnected challenges that limited its ability to effectively manage MRO inventory and procurement:
Decentralized purchasing decisions leading to inconsistent procurement practices
Limited visibility into inventory and spend across facilities
Suboptimal min/max policies causing excess stock in some locations and stockouts in others
Data inconsistencies from M&A activity fragmenting supplier and material master data
Difficulty identifying duplicate materials and enabling cross-site parts sharing
Without a unified data foundation, the organization lacked the visibility and alignment needed to optimize inventory, control costs, and make confident, data-driven decisions.
The Solution
The manufacturer implemented Verusen’s AI-powered MRO platform to unify and standardize inventory and procurement data across all facilities—without requiring a full data cleansing initiative.
- A unified, enterprise-wide view of inventory and spend using existing data
- AI-driven material normalization to standardize and categorize materials across systems
- Identification and elimination of duplicate materials across facilities
- Optimization of min/max inventory policies to balance service levels and cost
- Cross-facility parts search and sharing to reduce redundant purchases
- Centralization of purchasing insights to improve procurement consistency
By combining data visibility with advanced analytics, the platform provided actionable recommendations that allowed teams to reduce excess inventory, mitigate stockout risk, and align decision-making across operations and procurement.
Outcome
Using the Verusen platform, the organization identified $59 million in total savings opportunities, driven by stocking policy optimization, overmax reduction, parts sharing optimization, purchase price variance (PPV) improvements and vendor-managed inventory expansion, further enhancing cost control.
Beyond financial impact, the organization improved inventory visibility, reduced duplication, and enabled more consistent, data-driven decision-making across facilities.
How Verusen Supports MRO Inventory Optimization for CPG and Industrial Manufacturers
Industrial manufacturing environments generate vast amounts of inventory and procurement data, but value is only realized when that data can be unified, trusted, and acted upon.
Verusen enables manufacturers to leverage existing MRO data without requiring costly cleansing projects, providing a single source of truth across systems and facilities. By applying AI to normalize materials and identify optimization opportunities, organizations gain the visibility needed to reduce excess inventory, improve procurement decisions, and align teams around consistent processes.
This approach allows manufacturers to optimize inventory and spend while maintaining operational reliability and minimizing disruption to existing systems.
Typical Improvements CPG Manufacturers Can Expect
What improvement you can expect for your manufacturing business:
- Improved visibility into MRO inventory and spend across facilities
- Reduced excess inventory through optimized stocking policies
- Identification and elimination of duplicate materials
- Increased parts sharing across sites to reduce redundant purchases
- Lower carrying costs and improved working capital efficiency
- More consistent procurement decisions through centralized insights
Ready to See What MRO Inventory Optimization Could Look Like for Your CPG Operations?
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Frequently Asked Questions
How does MRO inventory optimization help CPG manufacturers reduce costs?
By improving visibility, eliminating duplicate materials, and aligning stocking decisions across plants, manufacturers can reduce excess inventory without increasing operational risk.
Does this require replacing existing ERP systems?
No. This approach works with existing ERP environments, including SAP, without requiring system replacement.
How quickly can teams see value?
Organizations can begin identifying inventory opportunities and reducing review time shortly after implementation using existing inventory data.
Is identified value the same as verified savings?
No. Identified value represents opportunity. Verified value reflects inventory reductions that have been confirmed and realized.