Background
In the consumer packaged goods (CPG) industry—particularly food manufacturing—operational efficiency depends on having the right materials available at the right time—without overinvesting in inventory. As cost pressures increase and supply chains become more volatile, manufacturers must balance uptime, working capital, and risk across their operations.
For this leading food manufacturer, MRO inventory management had become increasingly complex. Limited visibility into materials, inconsistent data across sites, and reliance on manual processes made it difficult to confidently manage inventory levels. As a result, excess inventory accumulated, duplicate materials went undetected, and critical decisions were slowed by a lack of data confidence.
The organization needed a way to unify inventory data, improve visibility, and enable faster, more accurate decision-making across its operations.
key results at a glance
$6.8M
Total Identified Inventory Opportunity
$2.8M
Overmax Reduction
$1.1M
Parts Sharing Across Sites
$1.0M
Carrying Cost Reduction
$0.8M
Vendor Managed Inventory Expansion
$0.6M
Tail Spend & Purchase Price Variance
Industry Context
Food manufacturers operate in high-throughput, asset-intensive environments where downtime and inefficiency directly impact production and margins. Maintaining service levels requires access to critical spare parts, but without clear visibility into inventory, organizations often overcompensate—leading to excess stock, duplicate materials, and unnecessary carrying costs.
As operations scale across multiple sites, MRO data often becomes fragmented across systems and teams. Inconsistent material definitions and siloed decision-making make it difficult to optimize inventory, share parts across locations, or align procurement strategies with operational needs.
To remain competitive, manufacturers must shift from reactive inventory management to a more connected, data-driven approach.
The Challenge
This enterprise faced several interconnected challenges that limited its ability to effectively manage MRO inventory:
Limited visibility into inventory across sites due to siloed systems and inconsistent data
Difficulty identifying duplicate materials and consolidating SKUs across locations
Outdated stocking policies that led to both excess inventory and stockouts
Reliance on tribal knowledge rather than standardized, data-driven decision-making
High carrying costs driven by overstocking and lack of optimization
Without a unified view of inventory, the organization struggled to balance availability with cost, leading to inefficiencies and increased supply chain risk.
The Solution
The manufacturer implemented Verusen’s AI-native MRO inventory optimization platform to unify and enhance inventory data across its operations.
- A single, enterprise-wide view of MRO inventory across all sites
- Identification and consolidation of duplicate materials to reduce excess
- Criticality-based inventory optimization to align stocking levels with operational risk
- Visibility into parts across locations to enable sharing and reduce unnecessary purchases
- Improved data confidence through material normalization and enhanced searchability
By replacing fragmented, manual processes with AI-driven insights, the organization was able to make faster, more consistent inventory decisions across procurement, maintenance, and operations teams.
Outcome
The organization identified $6.8 million in total savings opportunities, driven by improvements in inventory optimization, parts sharing, carrying cost reduction, and procurement efficiency.
How Verusen Supports MRO Inventory Optimization for CPG and Food Manufacturers
Food manufacturing environments generate large volumes of inventory data, but value is only realized when that data can be trusted and acted upon.
Verusen helps manufacturers unify MRO data across systems and sites, providing a single source of truth for inventory. By applying AI to normalize materials and identify optimization opportunities, organizations gain the visibility needed to reduce excess inventory, eliminate duplication, and improve procurement decisions.
This enables faster, more confident decision-making without requiring ERP replacement or disruption to existing operations.
Typical Improvements CPG Manufacturers Can Expect
What improvement you can expect for your manufacturing business:
- Improved visibility into MRO inventory across sites
- Reduced excess inventory driven by duplication and inefficient stocking
- Lower carrying costs and improved working capital efficiency
- Faster, more consistent inventory decision-making
- Better alignment between procurement, maintenance, and operations
- Reduced supply chain risk through improved inventory accuracy
Ready to See What MRO Inventory Optimization Could Look Like for Your CPG Operations?
Learn how AI-driven inventory optimization can help reduce excess inventory, improve visibility, and support faster, more confident decisions across your manufacturing network.
Request a custom CPG inventory assessment
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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.