The client is an engineering multinational group in tooling, materials technology, mining and construction.
MYSIGMA’s task was to increase finished goods availability and reduce tied up capital. Product availability is a key success factor to defend their leading market position.
Based on a data driven pre-study, below changes were made:
- Implemented new inventory control methodology.
- Introduced a bypass supply line for large orders.
- Suggested an improved product range control.
- Training and implementation of the MYSIGMA methodology.
These changes then led to dual benefits, that we could both:
- Increase service of low frequent items, from 93 to 95%.
- Reduced tied up capital by 12%, made possible through eliminating over-complicated stock rules for high frequent items.