THE CHALLENGE

An assembly plant was unable to meet its production targets due to mismanaged inventory and storage solutions.

10,000+ components stored

In any assembly plant, a lot of components are stored. They vary in size and value. All components form an integral part of the final product.

Non-systematic storage

All components in the plant were being stored with a manual ledger in unassigned racks and bins that provided low visibility of available stock.

High inventory costs

Low visibility of inventory increased the ordering, holding, and shortage cost for the company

Transformation Strategy

 

Store management

Integrated ERP system to maintain visibility of the store with rule-based protocols and alerts. An 80/20 principle was introduced to manage costs by controlling the order for demand-based stock.

Inventory control

Real-time monitoring and tracking of inventory were provided with the use of barcodes and scanners at points of stock entry and exit. Stored components were assigned to allocated racks to maintain full visibility of available stocks.

Automated contracts

Parameter-based generation of contracts for depleting stocks, directly forwarded to defined suppliers. Customized contracts based on sales input for demand-based stock orders.

Solution Impact

 

Lean business management
Target achievement
Increased productivity
Improved cash flow
Reduced store resources

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Operational Automation

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Workforce Management