NIBCO Realized Significant Inventory Asset Savings With Advanced Inventory Optimization Capabilities From IBM

NIBCO wanted to improve its inventory target-setting process to better meet customer expectations and requirements. In addition, the company sought to streamline its manufacturing process and reduce on-hand inventory levels by better aligning inventory targets with product demand. IBM Global Business Services designed a cost-effective solution to NIBCO's inventory planning issue, using the company's previous investment in SAP NetWeaver Business Intelligence (BI) capabilities. IBM researchers delivered customized inventory optimization algorithms, which NIBCO deployed to help streamline inventory management. The IBM researchers provided a technical document that described the algorithms and mechanics to perform the computations systematically. IBM supplied the computational approach for what was to be accomplished in the solution, and NIBCO developed a plan for how it would be done.