Member of the Visagio network
More Sutainable. More Digital.
Global Inventory Optimisation for Spare Parts
CHALLENGES
● 41 inventory organisations with over 75,000 items
● Inventory level over USD 300 Mln
● All SKU items treated equally without differentiation in regards to criticality and usage frequency
ACTIONS TAKEN
● Centralised and standardized procurement process
● Run analysis revealing that only 2.9% highly critical items and over 45% of items with no consumption in past 15 months
● Implemented an inventory management tool and mathematical model considering criticality and type of SKU
● Trained all procurement managers on how to define the service levels, control the items, and monitor inventory levels
RESULTS
● Reduction of inventory levels by 20% with a reduction of working capital of USD 60 Mln in six months Service level increase from 73% to 93% in less than six months
● Staff fully operational and independent after 3-month engagement