A total stock reduction of more than 5% with a stock availability increase of 2% throughout the supply chain network.
1. Problem Statement
- Issues with stock availability and stock management process.
- Lack of specific tool knowledge and limited tool functionality usage throughout the organization.
- Misalignment between the various systems being used to perform the day to day planning activities.
- The aim was to improve stock availability, unlock capacity to support future growth and implement standardised best practice planning daily execution rhythms.
2. Solution Approach
- Define criteria for proof of concept for the stock optimization model linked to the stock reduction methods to be applied.
- Capability development and upskilling of the material management team.
- Review system configuration and identify possible optimization opportunities.
- Statistical analysis on historical transactions to identify volumes and trends.
- Introduce continuous improvement frameworks.
3. Project Outcomes
- The change in the daily planning execution rhythms positively affected the stock availability.
- Identified and implemented automation within the planning and execution processes.
- Total stock reduction of more than 5% with an availability increase of more than 2% throughout the supply chain.
- Achieved the overall objective of increasing availability while reducing stock on hand and stock holding costs.
- Realised proactive supplier management tools and functions.