“We have realized that even when it is not possible to fulfill a customer request, it is very important to give reliable answers you can stick to; business growth is also built on trust”

Basic metals & Nonmetalics transformation

Inventory reduction

BUSINESS CONTEXT

• Growing in new international market segments.
• Recent take-overs.
• Different production locations and decentralised planning processes.

CUSTOMER NEED

• Need to free cash from operations.
• Inventory reduction.
• Less write-offs for obsolete or expired product.
• Increase internal efficiency.

RESULTS

• Inventory reduction.
• Reliable confirmations towards customers.
• Productivity gain.
• Working capital reduction.

CHANGES

• Stock calculation using historic demand analysis.
• Standard protocols to handle changes in demand, raw material supplies and NPI.
• Lock out forecasting errors.
• Process improvement actions in scheduling, manufacturing, warehousing.

R&G APPROACH

• Six Sigma methodology to analyse historic demand data.
• Calculation of optimal stock levels and introduction of one planning system.
• Installation of in-process measurements.
• Staff trained in Change Mgt.