How an $80M CPG Company Saved $900K and Gained Confidence in Every Inventory Decision

By outsourcing inventory management, a leading premium U.S. frozen and packaged food brand strengthened raw material & finished goods inventory control.
The CPG company now operates with clean data, accurate financial reporting, and confidence in inventory-related decisions taken with transparency and timely.

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Performance Snapshot

Lot Traceability Coverage

100% by item, by location, and by lot code

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Industry

CPG

Company Size

$80 million

Location

New York & Connecticut, U.S.

Date

May 2021- Ongoing

The Challenge: Inaccurate Inventory, Costly Write-Offs

As a fast-growing premium frozen and packaged food brand, the client was known for its commitment to quality ingredients and product availability. But behind the scenes, its inventory management systems hadn’t kept pace with its growth.
The company struggled with fragmented visibility across raw materials and finished goods. Without accurate data, financial close processes were slow, write-offs were frequent, and production planning often operated on assumptions rather than insight.
Over time, these gaps began to impact both profitability and customer trust, not because of product quality, but because of inventory inaccuracy and lack of control.

Key pain points included:

  • No visibility into raw material balances or valuation, all purchases recorded in a single GL account with no sub-ledger detail
  • Quarterly and annual reconciliations that consumed significant time and led torepeated write-offs
  • Inactive finished goods sub-ledger, preventing visibility by location or lot code
  •  Slow, error-prone month-end closes requiring post-close adjustments
  • Stockouts and expired inventory due to lack of raw material minimum order quantities and rotation practices

With growing demand and complex product lines, it was clear the company needed a transparent, and traceable inventory management process to restore accuracy, speed, and confidence across finance and operations.

The Goal: Complete Visibility and Control Without Adding Complexity

The company wasn’t just looking for a system upgrade. They needed an expert team who could:

  •  Establish real-time visibility into both raw material and finished goods inventory
  • Implement accurate, auditable accounting through sub-ledgers and reconciled balances
  • Create a disciplined month-end process that delivers reliable financials without manual firefighting
  • Introduce best practices like Bills of Materials (BOMs), Minimum Order Quantities, and regular cycle counts
  •  Improve inventory traceability from supplier to shipment, ensuring compliance, quality, and customer confidence
  • Deliver all of this in a cost-efficient model that supports scalability and future growth

The Solution: Structured Inventory Control and Traceability

A dedicated team of two full-time professionals worked closely with the client’s finance and operations leaders to deploy best practice standardized processes, configure systems, and establish full visibility across all inventory categories.

The approach included:

  • Implementing dedicated sub-ledgers for raw materials and finished goods within the General Ledger to ensure accurate posting and valuation
  • Supported and reconciled physical inventory counts performed by warehouse teams, ensuring accurate opening and closing balances and alignment with GL.
  • Developing Bills of Materials (BOMs) for every SKU to link raw material consumption directly to finished goods production
  • Setting Minimum Order Quantities (MOQs) and other best practices to prevent stockouts and overbuying.
  • Introducing monthly physical counts and reconciliations to align book balances with actuals by quantity and value
  • Activating lot-level tracking to provide complete traceability by product, batch, and location
  • Aligning financial reporting through accurate cost of goods sold (COGS) calculations and streamlined month-end close processes

Results: Accurate Valuation, Zero Write-Offs, and 12× Annual ROI

Within weeks of implementation, the client saw measurable improvements across every keyoperational and financial area:

  • Inventory visibility expanded from zero insight to real-time tracking by item, location, and lot code
  • Month-end close timelines were cut in half, now completed within five business days with no post-close adjustments
  • Raw material reconciliations moved from manual, once-a-year efforts to automated monthly reporting
  • Write-offs and expired inventory were eliminated through consistent cycle counts and lot-code rotation
  • Customer chargebacks dropped sharply as finished goods were shipped within required shelf-life windows
  • Stockouts were reduced by more than 90%, ensuring stable production and on-time retailer fulfillment
  • Resource efficiency improved dramatically. The entire process is now managed by just two FTEs, utilizing a 60% cost savings through offshore deployment

The result? Over $900K in annual savings, a 12× return on investment, and a clean, transparent system that gives leadership complete confidence in every inventory decision.

Frequently Asked Questions

Most clients begin to see clear improvements in visibility, reconciliation accuracy, and close timelines within the first 90 days of implementation.

Our offshore accountants coordinate and reconcile counts conducted by your local warehouse teams. We provide standardized templates, validate data, and ensure all counts align with your general ledger, without disrupting on-site operations

Not necessarily. The process reengineering  integrates with most existing ERP or accounting systems (e.g., NetSuite, QuickBooks Enterprise, Microsoft Dynamics, SAP). We focus on process redesign and control rather than costly system overhauls.

We establish controlled workflows, maintain segregation of duties, and use secure cloud collaboration tools. All entries and reconciliations are reviewed under a four-eye process to ensure data integrity and audit readiness.

Yes. Each engagement begins with a custom process mapping phase to align Bills of Materials (BOMs), production flows, and costing methods with your existing operations.

While savings vary by company size and complexity, most clients see 8–12× ROI through reduced write-offs, optimized purchasing, faster closes, and improved working capital efficiency.

All team members are U.S. GAAP–trained professionals experienced in CPG and manufacturing accounting. They work under U.S.-based leadership and follow your company’s policies for data security and compliance.

Absolutely. Our model is fully scalable, allowing you to add additional SKUs, locations, or team capacity without disrupting existing workflows or increasing overhead costs significantly.

We align with your preferred communication channels, typically Google Meet, Microsoft Teams, or email, and hold regular review meetings to ensure transparency, progress tracking, and smooth handoffs.

Our offshore model provides specialized expertise, U.S. Eastern Time working hours, and 60% lower cost, without the administrative burden of hiring, training, or managing additional staff.

Ready to strengthen your inventory control?

Let’s discuss how we can help your finance and operations teams gain visibility, accuracy, and savings, just like this $80M CPG brand