SIOP Diagnostic Identifies 41% Working Capital Reduction Opportunity

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The Challenge

A manufacturer was experiencing misalignment across planning, inventory, and scheduling processes, resulting in reactive execution, excess inventory, and limited visibility into demand and supply requirements. Without a more integrated SIOP process, the company faced challenges balancing service levels with working capital efficiency and scaling operations in a disciplined way.

Leadership needed a clear understanding of current-state planning gaps, the financial impact of those gaps, and the specific actions required to improve inventory performance and strengthen SIOP maturity.

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Our Approach

TriVista conducted a rapid SIOP diagnostic centered on a two-day on-site workshop, current-state process mapping, and cross-functional analysis of planning, inventory, scheduling, and replenishment practices.

The team reviewed historical demand, inventory levels, usage patterns, and planning behaviors to identify the root causes of excess inventory and reactive decision-making. TriVista then developed a prioritized set of improvement opportunities focused on inventory segmentation, demand-based replenishment policies, master scheduling, MRP discipline, and governance.

Rather than relying on broad process recommendations alone, TriVista translated the diagnostic into a practical roadmap with quantified targets and clear actions designed to improve working capital efficiency while maintaining material availability and operational continuity.

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The Results

TriVista identified a significant opportunity to improve inventory performance and strengthen the company’s SIOP capabilities. The analysis quantified an approximately 41% working capital reduction opportunity across purchased and make-to-stock inventory through improved segmentation, replenishment logic, and inventory policies.

The assessment also found that 91% of purchased part usage demonstrated consistent annual demand, supporting a shift away from excess buffering and reactive purchasing toward more structured, demand-based planning. This gave the company confidence that meaningful inventory reductions could be achieved without compromising material availability.

TriVista also established actionable inventory-turn targets, showing a path to improve performance from approximately 2x turns to 4–12x turns depending on inventory category. With a quantified opportunity and a prioritized improvement roadmap, the client gained a clear foundation for improving cash efficiency, planning discipline, and scalability.