Situation
Our client is an international manufacturer and leader in innovative technologies, cooperating with clients from the utilities, industrial, transport and infrastructure sectors. The company is present in over 100 countries.
The client faced the problem of having too much stock and a non-optimal inventory management strategy. A new distribution centre was being considered due to insufficient warehouse space in the existing facility.
Task
The client expected a comprehensive audit of the current warehouse stock management to reduce the warehouse space or confirm the decision to build a new distribution centre. Graphene Partners’ task was to identify inefficient processes and redesign the stock strategy to meet the client’s expectations.
Actions
- The warehouse processes were comprehensively audited
- Process gaps and non-optimal stock management were identified
- Warehouse and picking strategy were redesigned
- Stock control practices were improved
- The forecasting tool was selected and implemented
- Warehouse space was reduced due to stock optimization initiatives
Results
- Reduction of out-of-stocks > 12%
- Overall forecast accuracy increased > 35%
- Avoidance of opening new DC
The project enabled a major improvement in short term storage strategy. In the long term, our Client reduced their inventory sufficiently to avoid opening another Distribution Center.
Project Info
- Services:
- Warehouse Optimisation
- Inventory Optimisation
- Client: Leading Manufacturer of Industrial Engines
- Geography: Europe
Our Role
• Subject matter expertise
• Support with business case preparation
• Overall Programme Management
• SteerCo support