Inventory Optimization
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Inventory Optimization
At Implementation Engineers we optimize inventory for our clients through our supply chain practice. Our team is dedicated to implementing tailored solutions that drive efficiency, reduce costs, and improve overall inventory management processes. By leveraging our expertise and proven methodologies, we help clients overcome challenges related to material shortages, inventory accuracy, obsolescence, and process inefficiencies. Our approach to inventory optimization is designed to enhance inventory management processes and stocking procedures, often resulting in lower working capital requirements, and ensures we get the necessary components to the production line when required to minimize manufacturing delays and disruptions. Through our supply chain practice and inventory management activities, we equip clients to more effectively plan materials, make data-driven decisions and achieve sustainable improvements in their inventory management practices.
$3.5M revenue recapture of obsolete inventory
10% inventory reduction
21 day purchases lead time reduction
IX® in Action
Our client, a gold producer located in Brazil, had inventory processes and procedures which caused a lack of the right material and spare parts to keep operations running. About 14,000 different active items were controlled via a Min/Max replenishment system with an across the board 30 day lead time. The dynamics of the business made this unrealistic. Our client experienced stockouts on spare parts including critical items and at the same time had $13M in obsolete inventory. Our client partnered with IE to optimize its inventory and to plan, organize, then assist with the sale of its obsolete inventory. Activities during IX® included:
- Prepared "No Movement" stock classification and a clear out plan for obsolete inventory
- Defined inventory policy for capital spares, critical spares, spare parts and consumables
- Optimized Min-Max set up process including procedures and roles and responsibilities
- Developed updated procedures for process flows, ERP process functionality and ERP reporting and management tools
- Trained stakeholders on how to stratify, manage, and maintain inventory
- Defined critical measurement areas and KPIs to be tracked
