Background
In consumer packaged goods manufacturing, cost pressure is constant. As end consumers become more price sensitive, manufacturers are expected to reduce production costs while maintaining reliability, supply chain resilience, and sustainability commitments.
For this global CPG manufacturer, rapid growth through multiple acquisitions introduced significant complexity into MRO inventory management. Inventory data became fragmented across systems, decision-making was siloed, and excess working capital accumulated through duplicate materials and inefficient stocking practices.
The organization needed a way to restore visibility, align teams, and make faster, more confident inventory decisions across its expanding footprint.
key results at a glance
$63M
Identified Inventory Opportunity
$60M
Verified Value
41 Sites
Included Across the Network
4 Mins.
Average Time to Review Inventory Recommendations
Industry Context
CPG manufacturers operate in fast-moving, high-volume production environments where margins are sensitive to cost, disruption, and inefficiency. Supply chains are increasingly redesigned around resilience, while sustainability initiatives require better control over materials and waste.
As organizations grow through acquisitions, MRO inventory often becomes decentralized. Disparate ERP processes, inconsistent material definitions, and siloed decision-making make it difficult to balance uptime, cost control, and working capital efficiency at scale.
The Challenge
The organization faced several interconnected challenges:
Growth through multiple acquisitions created fragmented operations
Limited visibility due to siloed decision-making and disparate ERP processes
Misaligned incentives between procurement and operations teams
Excess working capital tied up in duplicate inventory and wasted spend
Difficulty locating parts quickly across plants and facilities
Without enterprise-wide visibility, excess inventory accumulated while teams lacked confidence in identifying what could safely be reduced.
The Solution
The manufacturer implemented a unified, AI-driven MRO inventory optimization approach designed to work across its existing SAP environment. This enabled:
- Identification of significant inventory reduction and stocking policy optimization opportunities
- Full visibility into MRO materials across all plants and facilities
- Global material search, allowing maintenance and operations teams to quickly locate parts
- Harmonization of all MRO inventory data into a single platform
- A reduction in material review time from more than 20 minutes to approximately 4 minutes per material
This approach replaced manual, fragmented workflows with consistent, data-driven inventory decision-making across the enterprise.
Outcome
- $63M in identified inventory value
- Exploration of deeper integration, including incorporating Verusen into an AI agent the organization is building
- $60M in verified inventory savings
- Material review time reduced to an average of 4 minutes
How Verusen Supports MRO Inventory Optimization for CPG Manufacturers
CPG manufacturing environments generate large volumes of inventory data, but value is realized only when that data can be translated into clear, actionable decisions.
Verusen helps CPG manufacturers unify MRO inventory data across plants and systems, enabling full visibility into materials, faster material reviews, and consistent decision-making across procurement, maintenance, and operations teams.
By applying AI-driven insights to existing inventory data, Verusen supports more effective stocking policies, reduced duplication, and improved working capital efficiency without requiring ERP replacement or disruption to operations.
Typical Improvements CPG Manufacturers Can Expect
What improvement you can expect for your CPG manufacturing business:
- Improved visibility into MRO inventory across plants and facilities
- Reduced excess inventory driven by duplication and inefficient stocking
- Faster, more consistent inventory review and decision-making
- Better alignment between procurement and operations teams
- Reduced working capital tied up in non-productive inventory
- Faster insights using existing inventory data, without data cleansing
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
Tailored to your 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.