Inventory Management
SITUATION
Leading global supplier of rolling bearings, seals, mechatronics, services and lubrication systems needed to reduce inventory and improve product availability.
DRIVER GOAL
- Identify the root causes for the current reduction in product availability.
- Launch a program to rapidly improve availability and reduce finished goods inventory.
RESULT
- Implemented radical change of manufacturing concepts for constrained channels.
- Developed a simplified and agile planning process.
Issue
One of the leading global suppliers of products, solutions and services in the area comprising rolling bearings, seals, mechatronics, services and lubrication systems needed to reduce inventory and improve product availability.
Highland Approach
The Highland Group’s analytical professionals conducted a Discovery and Design process that identified and detailed the key issues and the specific approach required to achieve the desired results and the projected benefits.
Actions Taken
- Analyzed current availability, stock levels and associated data to identify sources and patterns of poor performance.
- Conducted structured interviews with managers and executives in selected Sales, Service and Distribution centers to obtain their understanding of issues and develop hypotheses.
- Implemented a General Availability Improvement Program for sales areas and all factories.
- Implemented a market-focused supply chain strategy review.
- Produced consolidated project implementation following review by Global Supply Chain Board.
Undertook Deep Drill analyses of selected areas which impact stock levels and availability:
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Forecast & demand management processes;
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Replenishment planning and product reservation;
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Product or customer prioritization process; and,
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Key decision points and informal systems.
