INVENTORY
We STREAMLINE your Inventory
Common Tasks:
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Develop optimized inventory strategy in alignment with production demand and sales forecast
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Reduce raw material, component, work in progress and finished goods inventory to reduce working capital and storage footprint
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Deploy consignment stock strategy to reduce inventory risk and exposure (vendor owned inventory)
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Develop inventory from "Just-in-Case" to "Just-in-Time"
Methods and Tools:
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DOH Assessment
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ABC Analysis
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VED Classification
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Economic Order Quantity (EOQ)
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GOLF Classification
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SIOP Evaluation
Reference Industries:
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Parts and Components
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Pharmaceuticals
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Automotive
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Food
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Consumer Goods
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Building Materials
Ø Project Duration:
Ø Project Payback:
6 - 12 weeks
5 - 8 months
bottom line optimization 15 - 25%
Industry:
Company Size:
Project Location:
Global Automotive Supplier
135,000+
Germany / Austria / Czech Republic
Problem Statement:
Due to significant space constraints at their Austrian plant, our customer was forced to find creative ways to increase their plant production footprint for expected growth. A plant expansion at this location was not feasible and a 3PL solution not wanted by the executive team. If no solution was developed, the plant would be at risk to miss out on lucrative business in the future.
STREAMLINERS' Approach and Solution
Meeting:
High level understanding of operational core processes; plant and warehouse tour
Deep Dive:
Reveal and map space consuming processes, prioritization by impact; develop conceptual design of optimized layouts with additional production space
Hypothesis:
25% of the Austrian plant is used for finished goods storage and 90% of the finished goods are shipped to sister plants in Germany and the Czech Republic for assembly. Developing and implementing a Just-in-Sequence delivery concept between the Austrian plant and its sister plants in Germany and the Czech Republic will eliminate the finished goods inventory in Austria. The freed up space then can be used for growth in production.
Project:
2 consultants
12 weeks
Deliverables:
JIS concept developed and implemented
New processes aligned between all 3 plants
Feasibility successfully tested during 2 weeks pilot phase
Inventory reduction road map including schedule
Bottom Line Impact:
Finished goods physical inventory reduction by ~90%
Production capacity increase by 15-25%
Inventory Reduction (Ramp-up)
Fees vs. Bottom Line Impact
