About this Presentation
Nideesh Poduval presents a detailed TOC replenishment case from P.N. Gadgil & Sons, a heritage jewellery retailer operating in a capital-intensive, design-driven market. The starting paradox was simultaneous excess inventory and lost sales: popular designs went out of stock while slow designs accumulated across stores, replenishment took 7-21 days, and working capital became trapped in the wrong assortment. The conflict was structural. Sales needed broad design variety to protect revenue and customer choice, while Finance needed to limit inventory to protect cash and liquidity. Rather than accept the trade-off, the implementation changed what the system buffered and how demand signals were created.
The solution architecture combines sales-versus-stock-turn analysis, attribute-based replenishment codes, a centralized Design Bank, and design grouping. Every design is classified by actual sales behavior and stock-turn performance so fast-moving designs can be protected while slow-moving inventory is identified. Because jewellery pieces are not perfectly repeatable SKUs, replenishment codes carry design attributes such as category, weight range, style, vendor, and other characteristics. When a design sells, the signal is used to find the best available match in the centralized Design Bank. This applies Goldratt's aggregation principle at the design-attribute level and supports frequent, consumption-driven replenishment rather than forecast-based pushing.
The operating model is reinforced by max-consumption buffers, daily ordering, frequent replenishment, ongoing buffer adjustment, and planned seasonal changes. The deck reports a shift in replenishment time from 7-21 days to 1-4 days, stock turns from 4x to 7x, 95% design availability, $2.9 million in working capital released, $0.21 million in annual interest savings, and 70-80% of sales coming from the Design Bank, with no additional operating expense. The case argues that high-value aesthetic retail can achieve the full TOC result - throughput up, inventory down, and operating expense down - when legacy inventory is addressed and replenishment speed, aggregation, and demand signals are redesigned together.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
How TOC aggregation can be extended from identical SKUs to design attributes, using a centralized Design Bank to preserve variety while reducing inventory exposure.
Why high-value retail needs better demand signals: sales-versus-stock-turn classification and attribute-based replenishment codes replace intuition and broad push ordering with actual consumption data.
Why clearing or repurposing legacy wrong inventory is a prerequisite for a functional pull system rather than a cleanup activity to postpone until later.
How replenishment speed becomes a structural enabler: the case reports 7-21 days reduced to 1-4 days alongside higher stock turns, 95% availability, released working capital, lower interest expense, and a simultaneous T up / I down / OE down result.
Instructor(s)
Nideesh Poduval
Nideesh Poduval believes that most businesses don’t fail because of lack of effort — they fail because effort is applied in the wrong places.
As a management consultant and systems thinker, Nideesh works with organizations to uncover hidden constraints that silently limit growth. Drawing on the Theory of Constraints, marketing analytics, and operational strategy, he helps companies simplify complex problems, improve flow, and unlock capacity that already exists within their systems.
Over the past decade, he has worked with businesses across manufacturing, retail, and services to redesign sales channels, optimize supply chains, and scale operations without proportional increases in resources.
Beyond consulting, Nideesh enjoys breaking down complex business ideas into simple frameworks for leaders and students. He frequently engages with MBA programs and business communities, helping them understand how marketing, operations, and strategy are deeply interconnected.
At the heart of his work is a simple idea:
Growth doesn’t come from doing more — it comes from fixing the one thing that matters most.