Case Study #1: Stock Optimization
STOCK OPTIMIZATION PROJECT
About Trilations
At Trilations we are specialized in Operational Transformation. Our Business Analysts, Data Analysts, Architects and Project Managers give their all to enable you to make the right decisions and to make sure the results of these decisions are delivered.
Our aim is to enhance your revenue, your client satisfaction, your employee satisfaction and your business processes through in-depth analysis, data management and the use of new technologies. We make sure you are ready for the business world of today and tomorrow.
To give you a better understanding of our services we prepared case studies of some of our successes stories. This article talks about the first in a series of 9 case studies we will publish on our website, giving you a firm idea of what Trilations can make happen.
Contact us for more information about these or any other project needs you might have. We would love to discuss them with you.
Project setup
For an international player in the alimentary industry, we conducted an optimization project with three important aims:
- Focus on the client
- Increase in profitability
- Cash flow optimization
Trilations was asked to formulate a strategy and implement an approach in order to increase the overall efficiency of both the administration and the production cycles of an organization.
In a first phase it was decided to focus on stock optimization to improve availability and production lead times. Through an extensive analysis of stock build and production and storage capacity, 7 work streams were identified: 2 work stream quick wins and 5 medium/long term wins.
How did we tackle this issue? We set up and implemented a procedure that reduced the existing stocks, increased the stock turnover and improved the EOQ of the production runs. This allowed our business analysts to reorganize and optimize the procedures involved in our client’s business. In a time span of only 12 weeks we achieved three big results:
- An overall increase in production
- A decrease in storage costs
- A significant increase in revenue
Solutions and results
Project goals
- Increase OTIF to 95%
- Increase overall profitability
- Reduce cash flow requirements
- Implement quick wins
- Set up a roadmap for implementing medium/long term improvements
Technologies & methodologies
- Focus Interviews
- Workshops
- Agile approach
- ERP Solution QAD
- Planning & scheduling tools
Project flow
- In-depth Interviews and assessment of Stock build in particular
- Presentation of the findings and possible quick wins
- Draw up improved procedures and define a framework for implementation
- Process adaptation
Results
- One time revenue of € 70K by reducing stocks
- Year on Year reduction of € 170K storage costs
- Cash flow contribution of € 500K.
- Increased production based on improved Demand Planning; 2.000 tons
- Revenue increase due to higher production; € 415K
- Increase OTIF by increasing product availability while stock levels remain constant
Learn more
You can download this case study in PDF format below, in case you would like to reread or share the content. If you are interested in more details, want to find out how Trilations can help analyze your performance and drive up the results, please reach out to us.
I would like to receive more information about Trilations' services.
I would like to receive more information about Trilations' services.
Case study #1: stock optimization project
To give you a better understanding of our services we prepared case studies of some of our successes stories. This article talks about the first in a series of 9 case studies we will publish on our website, giving you a firm idea of what Trilations can make happen.
Download in PDF
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