Stock optimization and management project (Llamasoft Optimiza).


Stock reduction and visibility on actionable problem items.


1. Problem Statement

  • Limited visibility and cooperation across the inventory management landscape;
  • Manual stock optimisation steals energy from important inventory decisions;
  • Ineffective management of critical and insurance spares;
  • Inventory optimization not considering logistics;
  • No visibility, support and control over planning team activities and results;
  • No framework or data for improvement;

2. Solution Approach

  • By analyzing practices and data relating to inventory holdings, issuing, stockouts, lead times etc., we identify issues relating to inventory management practices and policies. These pointers and the results from our analysis are used categorize inventory and identify policies that can be used to manage availability effectively. Policies are tested and refined using scenario modeling. Policies are supported by business processes and KPIs that informs managers and stakeholders as to their effectiveness and the organization’s ability to execute them.
  • What is important is that the analysis and structuring of data into hierarchies and categories for forecasting, replenishment and management identifies actionable case studies for which optimisation strategies can be selected. Strategies includes supersessions, lifecycle management, demand pooling, multi-sourcing, supplier lead-time management, supply forecasting, MoQs, Load Building, Development of integrated forecasts, implementation of baselining and planning processes that can be monitored, excess redistribution, actionable exception management, etc.

3. Project Outcomes

  • Eliminate excess buildup;
  • Dramatically reduce the impact to plan uptime due to stockouts;
  • Inform planners on opportunities to redistribute stock;
  • Reduce the stock in the network whilst improving availability;
  • Develop cooperation between preventative maintenance and logistics;
  • Create a solution that can be learned, managed, scaled and maintained;