Combining technology and expert analysis to unblock manufacturing flow, realign inventory, and ensure a 98% service level

Feb 20, 2021 7:05:32 PM

THE CLIENT

Leading Material Supplier for Engineering and Technology Industries

Founded in 1946

Over 3,500 Customers 

€150M Annual Turnover

420 Employees

THE CHALLENGE

  • Redesign inventory process to achieve a goal of minimum 98% service level.

  • The project focused on 100 SKUs across four product families, and the starting service level was under 80%.
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TITAN’S SOLUTION

  • Build a seven-week timeline with our client for data collection and cleaning, simulation running, and output analysis by our Inventory Optimisation team.
  • Our software and analysts accurately determine optimum inventory levels, by correctly and comprehensively simulating all Supply and Demand Factors that influence any item’s optimal inventory level.
  • Create simulations that consider challenges in relation to current stock levels, distribution, suppliers, in-transit materials, and seasonality demand.

  • Using information discovered, our analysts mapped the Manufacturing Flow and Inventory Points to identify an opportunity to reduce the number of inventory points within the manufacturing process.

RESULTS

  • 98% Service Level Achieved

  • 24% inventory reduction

  • $8M reduction when applied across product families.

  • Reassigning the inventory holding locations was the key enabler to deliver reductions in inventory due to the reduced cumulative lead-times that were modelled in the simulation.
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Topics from this blog: Inventory Optimisation Case Studies