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