Mckillans: Revenue Growth through Strategic Inventory Management

Project Initiation: June 2, 2023

Objective: Increase Revenue by Eliminating Stockouts Across Entire Product Catalog

Key Challenge: Persistent stockouts across all SKUs disrupted revenue flow and stunted growth.

Background

Between January and June 2023, frequent stock-outs led to a steep revenue decline. While demand was stable, supply chain gaps caused by out-of-stock (OOS) periods severely restricted sales potential. This project focused on analyzing sales patterns, refining demand forecasting, and optimizing inventory to ensure year-round availability.

Approach

Data Analysis and Demand Forecasting

We conducted a comprehensive analysis of historical sales data to identify trends and peak demand periods. This enabled us to create a predictive model that aligned restocking efforts with actual customer demand.

Inventory and Shipment Planning

Post-forecasting, we implemented a structured replenishment plan. By mid-July, all SKUs were back in stock, with sufficient buffer to manage sudden demand spikes, ensuring continuous availability.

Proactive Inventory Management

From July 2023, we maintained a real-time monitoring system for SKU levels, allowing us to identify and prevent potential stockouts by dispatching inventory proactively.

Outcomes

Revenue Growth (January–June Comparison)

  • 2023: $1,548,469.40
  • 2024: $3,506,296.20
  • Increase: 126.4%

The continuous in-stock status drove a 126.4% revenue increase by mid-2024.

Year-over-Year (YoY) Revenue (Jan–Oct 31)

  • 2023: $2,780,720

  • 2024: $6,344,049

  • Increase: 128%

Maintaining stock across all SKUs resulted in a 128% revenue surge, validating the inventory strategy’s effectiveness.

Graph

Key Insights

Stock Availability Boosts Sales

Continuous stock availability directly drove sales growth by capturing demand without interruption.

Effective Demand Forecasting

Accurate forecasting was crucial to maintaining optimal stock levels, ensuring demand met supply without excess inventory.

Scalable Growth through Strategic Inventory Management

Preventing OOS situations enabled the business to scale smoothly, positioning for sustainable growth without disruption.