Nordic Tyre Group – a leading independent tyre distributor across the Nordic and Baltic markets – faced frequent inventory stockouts across all product categories and warehouses. This led to substantial lost sales, as frustrated customers turned to competitors. Their existing inventory management processes were inefficient and failed to predict demand accurately.

We partnered with NTG to design a solution strategy. We performed an in-depth analysis of historical data to measure the revenue lost from stockouts. We identified specific opportunities for improvement and created a strategic approach using value-driven inventory management and Theory of Constraints (ToC) replenishment. The outcome was a clear solution roadmap for the client.

Our analysis revealed the potential for NTG to capture up to 65% of the revenue they were previously losing due to stockouts. The strategy also showed a possibility of increasing revenue by 75% in high-demand categories. Nordic Tyre Group received expert guidance on the ToC approach and a solid plan to select partners for implementing the optimized inventory system.