The Inventory Mirage: Warehouses Full, Customers Still Waiting

The Inventory Mirage: Warehouses Full, Customers Still Waiting

How a global manufacturer and distributor replaced ERP/WMS/TMS silos with an Inventory & OTIF Control Tower — reducing excess stock, improving delivery reliability and giving sales a trustworthy answer to one critical question: “Can we actually promise this order?”

+10pp
OTIF improvement
-15%
Excess inventory reduction
70%
Faster stock reconciliation
Inventory & OTIF Control Tower
Live · 6 warehouses · 2 regions
ATP reliability
92%+18pp
Stock-out risk
18SKUs
Inventory value
$48M-7%
Avg. days of cover
42-9d
ERP says available 14,820 units
Δ 1,940
WMS physically ready 12,880 units
Availability by product family
ERP + WMS reconciled
A-class components
142 SKUs
96%
▲ 4pp
Finished goods
308 SKUs
91%
▲ 7pp
Seasonal SKUs
86 SKUs
74%
– flat
Spare parts
214 SKUs
68%
▲ 3pp
Long-tail parts
1,420 SKUs
61%
▼ 2pp
Promise at risk — SO-4182
2,400 units visible in ERP, but blocked in WMS quality hold (Hamburg). Reallocate from Antwerp or delay confirmation.
Replenishment signal
A-class velocity exceeds forecast by 22%. Auto-suggested reorder moved forward 9 days for 6 SKUs.
OTIF current
94.2%+10pp
vs. 84% baseline
On-time
96.4%+8pp
Carrier + warehouse
In-full
97.7%+6pp
Allocation accuracy
Customer claims
12-58%
Open / YTD
OTIF failure root causes — last 90 days
340 missed orders
84%
Baseline OTIF
+4.1pp
Stock conflict
fixed
+2.8pp
Allocation logic
+1.9pp
Carrier alerts
+1.4pp
Region rebalance
94.2%
Current OTIF
OTIF by region — 6-month trend
Monthly rollup
DACH
95.1%
Nordics
96.4%
UK & IE
92.3%
North America
93.0%
Excess inventory
$7.2M-15%
After safety stock reset
Slow movers
1,240SKUs
FSN/ABC class C–N
Obsolete risk
$1.4M+90d
No movement in 90 days
Freed cash YTD
$3.8Mtarget
Working capital released
Inventory aging buckets
By days since last movement
0 – 30 days
$28.4M
2,180 SKUs · healthy
31 – 60 days
$12.6M
980 SKUs · monitor
61 – 90 days
$5.8M
620 SKUs · review
90+ days
$1.4M
240 SKUs · obsolete risk
Top excess-stock SKUs — recommended action
Action required
SP-08214
Hydraulic seal kit, type B
147 d
$284K
FG-21508
Industrial drive unit (legacy)
119 d
$218K
SP-04472
Replacement filter, 200mm
98 d
$162K
FG-19023
Control panel, EU spec v3
94 d
$144K
CM-67301
Cable harness, discontinued
186 d
$98K
At-risk orders
7/ 72h
Combined value
$1.8Mexposure
SLA penalty risk
$94Kif missed
Orders requiring action — next 72 hours
Auto-detected
SO-4182
Bauhaus Industrie GmbH
$420K
18h
Stock conflict
SO-4209
Nordic Marine AS
$285K
26h
Quality hold
SO-4221
Sunderland Mfg. Ltd.
$340K
34h
Carrier delay
SO-4198
Volvo CE — Eskilstuna
$268K
42h
Allocation gap
SO-4234
Hexagon Components
$215K
51h
Partial pick
SO-4247
Rockwell Automation
$182K
62h
Wrong region
SO-4256
PPG Industrial Coatings
$108K
68h
Recoverable
Strategic customer alert
Bauhaus Industrie order is the 3rd late shipment this quarter — SLA threshold reached. Escalate to KAM.
Recovery option
Rebalance from Antwerp warehouse: covers 4 of 7 risk orders without expediting cost. ETA preserved.

📋 Strategic Blueprint Based on Real-World Scenarios

This case story illustrates a common data challenge for manufacturing, distribution and logistics organizations: fragmented ERP, WMS, TMS and sales data creating false confidence in inventory availability. Do your teams argue about stock instead of acting on it? Let’s map your Inventory Control Tower →

The company had warehouses full of stock — and still failed to deliver what customers needed.

A global industrial manufacturer and distributor had inventory across six warehouses in Europe and North America. On paper, the business looked well stocked. The CFO saw working capital locked in inventory. Sales saw “available” products in ERP. Operations saw warehouse locations full.

But customers saw something else: incomplete deliveries, delayed orders and unreliable commitments. The root cause was not a simple shortage. It was an inventory mirage: ERP, WMS, TMS, forecast files and sales spreadsheets all described a different version of availability.

Some products were visible in ERP but blocked in WMS. Others were physically present in the wrong region. Slow-moving SKUs consumed space and cash, while fast movers were protected by outdated safety stock rules. Every team had data. No one had the truth.

The Breaking Point

The turning point came during a renewal negotiation with a strategic B2B customer. The customer demanded a reliable service-level commitment for a key product family. Sales promised based on ERP availability. The warehouse later confirmed that part of that stock was reserved, blocked or sitting in the wrong region.

The order shipped late and incomplete. The customer moved part of the volume to a competitor. The post-mortem revealed the painful truth: the company had enough total inventory, but not enough decision-grade visibility to promise, allocate and replenish correctly.

An Inventory & OTIF Control Tower above operational systems.

Multishoring designed a governed analytics layer that did not replace ERP, WMS or TMS. Instead, it connected them into one trusted view of availability, delivery performance and working capital risk.

1

Map the data reality

We audited ERP, WMS, TMS, order management and forecast spreadsheets to identify conflicting inventory definitions and broken handoffs.

2

Build the single source of truth

Azure Data Factory pipelines consolidated operational data into a governed Azure data layer with standardized SKU, location and customer dimensions.

3

Define OTIF and availability logic

We aligned business and IT around one OTIF definition, available-to-promise rules, blocked stock treatment and inventory segmentation.

4

Deliver exception-based control

Power BI dashboards and alert logic highlighted stock-out risk, excess inventory, slow movers and orders likely to miss OTIF before the customer felt it.

Technology Architecture

The Control Tower became a decision layer above existing systems: operational platforms continued to run the business, while Azure and Power BI turned fragmented data into trusted operational intelligence.

Source systems

  • ERP for orders, master data, reservations and financial inventory value
  • WMS for physical stock, locations, quality holds and warehouse movements
  • TMS and carrier data for shipment status and delivery timestamps
  • Forecast and sales inputs for demand signals and priority customers

Azure data layer

  • Azure Data Factory ingestion and orchestration
  • Azure Data Lake / SQL warehouse for integrated history
  • Semantic model for SKU, customer, warehouse and order logic
  • Data quality checks for conflicting availability and missing movements

Business layer

  • Power BI Inventory & OTIF Control Tower
  • Available-to-promise cockpit for sales and customer service
  • Slow-moving and excess inventory watchlists
  • Exception alerts for stock-out, OTIF and warehouse risks

A Supply Chain Manager’s Week: Before & After

The project changed the rhythm of decision-making. Instead of debating which system was right, teams started acting on shared exceptions.

Transform
Before
5 systems
ERP, WMS, TMS, order tools and Excel reconciled manually
2 days
To answer a strategic customer availability question

“The warehouse said stock was blocked. ERP said it was available. Sales had already promised it. Everyone had data, but nobody had confidence.”

— Regional Supply Chain Manager
After
1 cockpit
Shared visibility for sales, supply chain, finance and IT
Minutes
To confirm reliable available-to-promise status

“We stopped asking ‘which number is right?’ and started asking ‘which exception do we fix first?’ That shifted the entire operating rhythm.”

— Head of Supply Chain Planning
84%
OTIF before
94%
OTIF after
+10pp
Reliability gain

From reactive stock firefighting to controlled inventory decisions.

The biggest win was not another dashboard. It was one operational language for availability, OTIF and inventory risk.

Before: Inventory Mirage

  • ERP and WMS showed different stock availability for the same SKU
  • Sales promised orders using outdated or incomplete availability data
  • Slow-moving inventory blocked warehouse space and working capital
  • OTIF failures were analyzed after the customer had already escalated
  • Finance saw rising inventory value but could not see which stock was useful

After: Inventory Control Tower

  • One trusted view of stock, reservations, quality holds and order demand
  • Available-to-promise logic aligned across sales, warehouse and planning
  • FSN/ABC segmentation exposed slow movers and excess stock by location
  • OTIF risks were detected before shipment deadlines were missed
  • CFO and supply chain teams could connect service level with working capital

Quantifiable Business Impact

The solution created measurable value by improving delivery reliability while reducing unnecessary inventory buffers.

+10pp
OTIF improvement, from 84% to 94%, through better stock visibility and exception management.
-15%
Reduction in excess inventory after reclassifying slow movers and resetting safety stock logic.
$3.8M
Estimated working capital released by reducing overstock and targeting obsolete-risk SKUs.
70%
Faster reconciliation of stock discrepancies between ERP, WMS and customer order data.

Your path to reliable inventory visibility.

01

Inventory Data Audit

We review ERP, WMS, TMS, order and forecast data to identify where availability, reservations and delivery status diverge.

02

Control Tower Pilot

We build a focused pilot for one region, warehouse network or product family to prove OTIF and working capital value.

03

Scale to Network Visibility

We expand the model across warehouses, customers and product categories, adding governance, alerts and executive reporting.

“Inventory problems are rarely just warehouse problems. They are usually visibility problems. When ERP, WMS, TMS and sales data finally speak the same language, companies can protect customer promises without hiding behind expensive safety stock.”

Justyna Łukaszuk

Justyna Łukaszuk

PMO Manager, Multishoring