Reverse increasing cash investment in critical spares to maintain order fulfilment.
Background
Investment in inventory was growing however availability of critical spares was declining resulting in increased production downtime and diminishing order fill rates.
The Problem
We identified that procurement was disconnected from production and demand forecasts. The cost of critical spares was prohibitive to maintain desired levels while actual replenishment did not meet the needs for production.
The Results
Having identified the core issues we implemented revised procedures that connected the interrelated areas and provided an integrated solution across the organisation and suppliers.
The Process
We engaged both the manufacturer together with its suppliers to improve communication, data exchange and stock availability. Working capital was reduced and order fulfilment rates dramatically increased.
