Inventory control by differentiation

Challenge

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.

Solution

These changes resulted in dual benefits:

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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

Impact

Based on a data driven pre-study, below changes were made:

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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

Inventory control by differentiation

Challenge

Solution

Impact

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