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PROPOSAL Inventory and Working Capital Improvement Meridian Advisory LLP · Mumbai · 1 October 2026 |
Prepared for | Mr Suresh Patel, Managing Director, Shreeji Polymers Pvt. Ltd., Ahmedabad |
Prepared by | Meridian Advisory LLP, Mumbai |
Date | 1 October 2026 |
Valid until | 31 October 2026 |
₹16 crore Working capital to be released | 79 → 55 Days of inventory in nine months | 16 weeks Three-phase engagement |
1. Our understanding of your situation
Shreeji Polymers makes moulded plastic components for the automotive and appliance industries from two plants in Sanand and Vatva, with annual revenue of ₹245 crore. Over the past two years, revenue has grown 22%, but inventory has grown much faster, from 48 days to 79 days of sales. Around ₹53 crore is now tied up in raw materials, work in progress and finished goods.
In our meeting on 24 September, you and your CFO, Ms Rina Shah, described the effects:
- The working capital limit with your bank is nearly fully used, delaying the planned new moulding line
- Plants run short of some resins while holding six months of others
- Finished goods for discontinued customer parts are filling the Vatva warehouse
- Planning is done in spreadsheets, and sales forecasts are not shared with purchasing
2. Objectives
This engagement will help Shreeji Polymers:
- Reduce inventory from 79 to 55 days of sales within nine months, releasing about ₹16 crore of cash
- Keep on-time delivery to customers at or above the current 94%
- Put in place a monthly sales and operations planning (S&OP) process owned by your team
- Set clear stock policies for every raw material and finished good
3. Our approach
We propose a 16-week engagement in three phases.
Phase 1: Diagnose (weeks 1–4)
- Analyse 24 months of sales, production, purchase and stock data from your Tally and plant systems
- Classify all 3,100 SKUs by value and demand pattern (ABC analysis by value, plus demand variability)
- Identify slow-moving and obsolete stock and its value
- Interview sales, planning, purchasing and plant teams at both sites
Phase 2: Design (weeks 5–9)
- Set reorder points, safety stock and order quantities for each SKU class
- Design the monthly S&OP meeting cycle, roles and dashboard
- Agree a plan to sell, rework or write off obsolete stock
- Review supplier terms for the top 15 resin and packaging suppliers
Phase 3: Implement (weeks 10–16)
- Launch the new stock policies in both plants
- Run the first three S&OP cycles alongside your team
- Train 20 planners, buyers and supervisors
- Hand over the dashboard and a playbook so your team runs the process on its own
4. Deliverables
Deliverable | Phase | Timing |
|---|---|---|
Diagnostic report with inventory baseline and savings estimate | 1 | End of week 4 |
SKU stock policy model (Excel) | 2 | Week 8 |
S&OP process design and dashboard | 2 | Week 9 |
Obsolete stock disposal plan | 2 | Week 9 |
Training sessions and S&OP playbook | 3 | Weeks 12–16 |
Final report with results against targets | 3 | Week 16 |
5. Our team
- Vikram Rao, Partner (engagement lead): 18 years in supply chain consulting for manufacturing companies; former Head of Planning at a listed auto components maker
- Neha Joshi, Senior Manager (day-to-day lead): leads our inventory and S&OP practice; on site in Ahmedabad three days a week
- Aditya Kumar, Analyst: data analysis and modelling, on site full time during phases 1 and 2
6. Fees
Phase | Duration | Fee (₹) |
|---|---|---|
Phase 1: Diagnose | 4 weeks | 12,00,000 |
Phase 2: Design | 5 weeks | 15,00,000 |
Phase 3: Implement | 7 weeks | 18,00,000 |
Total professional fees | 16 weeks | 45,00,000 |
GST at 18% | 8,10,000 | |
Total including GST | 53,10,000 |
Travel and stay outside Mumbai are billed at actual cost and capped at ₹3,50,000 for the engagement. We estimate the engagement will release about ₹16 crore of working capital, roughly 35 times the professional fee.
7. Terms
- Payment: 25% on signing, 25% at the end of each phase. Invoices are payable within 15 days.
- Client support: Shreeji Polymers will name a project lead and give access to data and staff as agreed in the week 1 kickoff.
- Confidentiality: all information shared is confidential and will be used only for this engagement.
- Ownership: all models, dashboards and reports produced belong to Shreeji Polymers on full payment.
- Changes: any change to scope will be agreed in writing, with its effect on fees and timing.
- Termination: either party may end the engagement with 15 days' written notice; fees are due for work completed.
8. Next steps
- Review this proposal and share any questions by 15 October 2026
- Sign the engagement letter
- Kickoff workshop at the Sanand plant, proposed for Monday, 2 November 2026
We look forward to working with you.
Vikram Rao, Partner, Meridian Advisory LLP
[email protected] | +91 98201 77345
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