Case Study - A regional distribution & supply company

Half a million dollars, found on the floor

A distributor was tracking inventory on legal pads. We gave them a system and it surfaced $560K that had been quietly walking out the door.

Client

A regional distribution & supply company

Industry

Construction & Trades

Engagement

One-time engagement

The situation

A regional distributor was running real inventory on yellow legal pads. Counts lived in someone’s handwriting, stock moved without a record, and nobody could say with confidence what was actually on the shelf versus what the paper claimed. When the system of record is a notepad, shrinkage doesn’t show up as a number — it shows up as a vague sense that things don’t quite add up. The company knew it was losing product. It had no way to see how much, or where.

What we did

We replaced the legal pads with a controlled inventory system — barcoded items, scanned movement, and a single source of truth for what was on hand. Every unit became something the system could see: received, moved, counted, reconciled. For the first time, the gap between what the records said and what was physically present became measurable instead of suspected. No more counting by hand, no more trusting the pad.

The result

Once the counts were real, the losses stopped being a feeling and became a figure. The system surfaced over $560,000 in inventory that had been disappearing without a trace under the old paper process. That’s money the company couldn’t have recovered, or even named, until the work it used to do by hand was done by a system that didn’t blink. Controlled inventory didn’t just tidy up the back office; it put a number on a problem the business had been absorbing silently for years.

Inventory recovered

$560K+

identified loss, invisible under the old paper process

System of record

Legal pads → Barcoded

handwritten counts replaced by scanned, controlled inventory

Visibility

Suspected → Measured

shrinkage became a number the business could act on

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