The River Company

When River & Co. started as a single neighborhood shop selling handcrafted goods, nobody 
imagined it would one day fill warehouses, power a national manufacturing floor, and keep 
accountants in three different time zones awake at night. But businesses grow like rivers: 
they find new channels, carve new routes, and sometimes have to build a dam to hold 
everything in check.

The geography of the business

By the time the company became “The River Company,” its footprint was clear and deliberate:

Shops: Small storefronts and fulfillment micro-hubs across towns — the places customers see and where local inventory lives.

Districts: Groups of shops clustered by city or metro area (five to twelve shops per district). Each district shared a logistics coordinator and a district manager.

Regions: Collections of districts — Northeast, Midwest, South, West — where regional directors set strategy and capital priorities.

Headquarters:The nerve center for finance, forecasting, product, and the manufacturing teams.

Everyone used the same language: SKU, lead time, transfer order, gross margin, and — the 
word that made everyone either excited or nervous — visibility.

The problem

Inventory looked good on paper at headquarters: warehouses were full, numbers were 
green. But shops kept running out of a bestselling item every other week while other stores 
sat on slow-moving pallets. Freight bills were spiking because each shop reordered 
individually and overnight shipping became a habit. The manufacturing team complained 
that some factories were overproducing low-margin items while others — where production 
was more efficient — were starved for work.
Heads met in a glass-walled room. The verdict was unanimous: the company had data 
islands and money leaks. They needed to know three things in real time:

Where inventory actually was (shop shelf, district transfer queue, regional warehouse, or in transit).

How money flowed— P&L at the shop level that could roll up through district and region into the corporate statement.

Which manufacturing teams were truly the best— not by anecdotes, but by measurable, comparable metrics.

The characters who fixed it

Maya, the inventory manager, who loved maps and hated surprises.

Sam, the logistics lead, who had a habit of solving problems on a whiteboard at 2 a.m.

 

Jules, the district manager who could smell inefficiency from three blocks away.

Renee, the CFO, whose favorite phrase was “roll up the numbers.”

Diego, manufacturing foreman, who believed the best ideas came from the shop floor.

They built a plan that was equal parts behavior change and systems: better visibility, clever 
shipping, and disciplined financial roll-ups.

The solution

Maya started by tagging inventory across every location with a single identifier. Not 
barcodes and spreadsheets scattered across departments, but one source of truth — a 
living map of every SKU and where it was. When a shop scanned a sale or a return, the 
map updated. When a transfer order was created, the map marked the items as “in transit” 
and projected arrival windows.
Sam redesigned shipping rules. Instead of shops ordering individually for rush delivery, the 
system could now:

Identify nearby shops with excess inventory and automatically generate a low-cost transfer order.

Suggest regional consolidationswhere small transfers were batched into a single truck movement.

 

Use priority shipping only when ther were true lost sales at risk.

The result: fewer emergency couriers, more predictable trucks, and a reduction in freight 
cost per unit shipped simply by moving things across existing lanes rather than opening new 
ones.
Jules used a new district view on her tablet. She could zoom from a shop’s shelf-level view 
to a district snapshot that showed total inventory value, local promotions draining certain 
SKUs, and transfer queues awaiting approval. If a downtown shop was selling out of 
insulated jackets while the neighboring suburb store had racks of the same sizes, she could 
approve a transfer with a tap — saving markdowns and lost sales at once.
Renee got what she wanted: P&L that rolled cleanly. Each shop maintained its own local 
ledger (sales, returns, discounts, local expenses). Those rolled up to district statements 
(which included transfer costs and shared district-level rent/overhead), and those rolled into 
regional summaries that highlighted capital needs and profitability. The corporate dashboard 
at HQ could show the national view — total inventory carrying cost, cash tied up in stock, 
and consolidated margins — or it could zoom down to the single shop and show whether a 
community event was skewing demand.
Diego, at the manufacturing plants, finally had apples-to-apples performance metrics. The 
company tracked:

Throughput: units completed per shift

Yield: percent of finished product that met quality standards

 

Changeover time: minutes to switch product lines

On-time fulfillment: percent of production shipped by promised date

Cost per unit: raw materials + labor + over head allocated

 
Using these metrics, they discovered an astonishing thing: a smaller plant in the Midwest 
had better yield and lower scrap rates than the larger coastal factory. That plant’s team had 
slightly different tooling and a revision in their process introduced six months earlier — 
something Diego’s team had assumed was local folklore. With the new visibility, headquarters could shift production to the high-performing plant for certain SKUs, saving 
money and reducing rework.

A decisive week

The week the system went live, something beautiful happened.
A sudden heatwave caused a spike in sales of cooling accessories in three city shops. The 
old way would have triggered overnight express orders and angry customers. The new way 
did this:

The system flagged the spike and alerted the district coordinator.

It recommended transfers from a suburban shop two miles away with surplus inventory, and scheduled a same-day courier that cost a fraction of and overnight express fee.

The district P&L reflected the transfer cost, the surge in sales, and the improved local margin — which rolled up to the regional report.

HQ saw a pattern forming across multiple metro areas and ordered a small, targeted production run at the most efficient manufacturing plant. Because the plant had lower scrap and faster changeover, the unit cost was lower than the historic average.

No one celebrated spreadsheets that week. They celebrated customers getting what they 
wanted without costing the company extra.

The deeper change


Beyond the dashboards and the transfer orders, there was a human change. Maya’s team 
started holding weekly “map reviews” where they looked at where inventory sat and why. 
Sam’s logistics crew learned the art of soft constraints — setting rules that let the system 
auto-solve common cases and flag the rare exceptions for human attention. Jules and other 
district managers built trust: they could move inventory between stores without waiting on 
corporate approvals for every small transfer because the financial system would record the 
movement and reflect it in the next roll-up.
Renee stopped getting surprise calls about freight spikes. She could see, on any given day, 
the cash tied up in inventory at every level and how much of that cash was working (fast-
turn SKUs) versus sleeping (aged items). That clarity let her free up capital to pay down 
debt and invest in better tooling for the best-performing plant.
Diego and the manufacturing teams started sharing small improvements. When the Midwest 
plant reduced changeover time by ten percent, that process note became part of standard 
work on other lines. Production didn’t just move to the most efficient plant — the whole 
system learned.

The moral (but practical)

The River Company didn’t become perfect. There were still occasional surprises. But they 
learned three things that changed the game:

Visibility reduces panic — when you know where things are, you make cheaper choices.

Local autonomy with disciplined roll-ups scales — shops can act fast, districts can optimize, and finance still gets consolidated, accurate numbers.

 

Measure manufacturing, and then trust the measures — objective production metrics allowed HQ to direct work where it made economic sense and to copy good process across plants.

Epilogue

A year later, Maya walked past a shop window and saw a child tugging at a parent’s sleeve, 
pointing to a best-seller that had almost been a permanent “stockout” problem the year 
before. Maya smiled. The system had done what it was supposed to do: it let the company 
be in the right place at the right time without wasting money getting there.
At the headquarters, the quarterly report had a new line item in small print: “Savings from 
optimized transfers and manufacturing reallocation.” Renee read it, leaned back, and 
messaged the team: Good work — the river is flowing the way we planned.

The River Company: Why They Needed FireFlight

River Company began as a single shop selling handcrafted goods, but rapid growth led to 
challenges that threatened efficiency and profitability. Shops frequently ran out of popular 
items while neighboring locations had excess stock. Emergency shipping costs skyrocketed, 
finance struggled with fragmented roll-ups, and manufacturing performance was 
inconsistent. Leadership realized that without a system to unify inventory, financials, and 
production data, scaling the business would be chaotic and expensive.
They needed a solution that would provide:

Real-time visibility into inventory across all levels (shop, district, region, warehouse)

Financial transparency with accurate roll-ups from shop to HQ

Metrics to understand and optimize manufacturing performance

Tools to reduce shipping costs and improve stock allocation

 

FireFlight Implementation for River Company

Capabilities Introduced:

Single Source of Truth:Unified inventory, orders, transfers, shop P&L, and manufacturing data.

Real-Time Event Pipeline:Captures POS sales, transfers, and production events.

Calculation Engine:Consistent business logic for financials, cost allocation, and roll-ups.

Scenario Engine: “What-if” simulations for transfers, production allocation, and financial outcomes.

Transfer Optimizer:Minimizes shipping and inventory costs.

Role & Workflow Controls: District-level approvals with HQ oversight.

 

Reporting & Dashboards: Drill-down from shop → district → region → national P&L.

Build/Deploy & Migration Pipelines:Safe rule changes and legacy data integration. who- I 

 
Mapping to River Company Problems
Problem
FireFlight Solution
Shop stockouts, 
excess inventory
Unified inventory + transfer optimizer. Transfers suggested and auto-
executed, reducing stockouts.
Rising freight 
costs
Scenario engine evaluates transfer vs. expedited shipping vs. lost 
sales, reducing unnecessary freight.
Fragmented 
finance roll-ups
Central calculation engine rolls up shop P&L to district, region, and 
HQ with auditability.
Manufacturing 
inefficiency
Event-based KPIs (throughput, yield, cost/unit) allow HQ to reallocate 
production and improve processes company-wide.

Event Flow Example

Customer buys at Shop A → sale event to FireFlight

Inventory updated across district

Safety stock check triggers transfer optimizer if stockout risk > threshold

District manager approves suggested transfer (Shop B surplus)

 

Transfer cost recorded; inventory marked in transit

Scenario engine simulates regional production adjustments at most efficient plant

 

Finance dashboards automatically reflect local and regional financial impact

Data & Technical Highlights

Canonical entities: SKU, Lot/Batch, Location, TransferOrder,Sale, ProductionRun, FreightInvoice, JournalEntry

Event bus: append-only transactional event stream

Materialized views: fast roll-ups for P&L and inventory metrics

Calculation layer: versioned business rules

APIs/connectors: POS, WMS, ERP, TMS, MES integrations

Security: role-based access, row-level controls, full audit log

 
 

KPIs Monitored

Shop: days-of-supply, stockouts, gross margin

District: transfer cost/unit, fill rate, inventory carrying cost

Region: aggregated margin, manufacturing allocation efficiency, capital tied to inventory

Manufacturing: units/shift, yield %, scrap cost, changeover minutes, cost/unit

 

Implementation Phases

Phase 1 (30–60 days): FireFlight environments, POS/WMS integration for pilot shops,
shop-level P&L calculation

Phase 2 (2–3 months): Transfer optimizer, district dashboards, workflow approvals,
historical data migration

Phase 3: MES integration, manufacturing scenario engine, CI/CD for business rules,

full roll-up and audit configuration

Outcome

With FireFlight, River Company achieves:

  Optimized inventory movement

 

  Reduced freight and lost sales

Accurate and auditable financial roll-ups

 

  Data-driven manufacturing improvements

 

Visibility and actionable insights at shop, district, region, and HQ levels

 
 
The company now proactively plans inventory, allocates resources efficiently, and scales 
with confidence.
“The names of this company has been changed to protect their information, and each scenario represents a practical use case of FireFlight”.