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In 2011, the New Zealand Defence Force (NZDF) initiated an inventory transformation program using their existing resources. 

Although the program successfully maintained existing service levels whilst delivering very significant dollar reductions in net inventory, during this process the NZDF Logistics Leadership Board recognised their requirement for a modern inventory optimisation capability to fully exploit their SAP data and deliver even greater improvements.

In October 2013, the NZDF selected the Red Cube Inventory Optimisation software to provide a predominantly-automated strategic inventory optimisation capability. 

The NZDF purchased an enterprise licence of the Red Cube software which has now been successfully installed and implemented in four discrete departments: Land, Sea, Air and Munitions. 

The procurement included a contractual performance to guarantee that the NZDF will realise an ROI of several hundred percent within 12 months of implementation. 

The NZDF acquisition is the latest among a growing number of major organisations, including Australian defence prime contractors, that recognise the limitations of their established approach which can deliver only some, and not all, of the benefits realised from implementing modern inventory optimisation.

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