Inventories are fundamental for all industrial activities. On the one hand, they allow to smooth the business, shorten the lead times to answer customer needs, and to cover shortage risks. But on the other hand, they generate costs: warehousing, operational management, financial management and loss of value by depreciation. Depending on the sector, the yearly inventory holding cost is assessed at least at 15 to 20% of its value. This means that owning and managing 10M€ of inventory costs every year about 1,5 to 2M€!
Inventory management is the business which aims at sizing dynamically inventories to guarantee a good service for consumers, while limiting the operational and financial impacts.
Therefore the inventory manager has an optimization mission, which he can done by activating lots of levers: inventory parameters (safety stocks, lot sizes, etc.), internal and external lead time reduction, vendor collaboration, dead stock management, etc.
We consider that this mission can be achieved only with this prerequisites:
The material master is under control and mapped (value, number of SKU, classification, criticality, rotation, etc.);
The actors on the field are training in terms of business and IT usage;
The optimization action plan is assessed, prioritized, planned over several years, and then driven with a convenient organization;
The process is supported by tools to accomplish efficiently the actions.
DataPowa supports you on these 4 topics.
DataPowa performs diagnosis of the processes, tools and organizations that are involved in the procurement and inventory management.
Stock analysis by nature and rotation class;
Assessment and benchmark of data quality, processes and organization maturity;
Study of operational costs and financial impacts of stocks;
Identification of main accessible optimization levers;
Design target processes and organizations, set up trajectory, planning and assessment of operational and financial savings (business case).
DataPowa builds and presents training sessions adapted to your organization and processes, with for instance:
Business fundamentals: classification, MRP, criticality and internal or external customer service levels, lead time management, parameters calculation mathematics principles, suppliers OTD, etc.
Principles and financial impacts: inventory and procurement in the balance sheet, income statement and cash flow statement;
Inventory optimization actions : inventory parameters and lead times adjustement, clean-up by scraps, collaborative sourcing with suplliers, etc.
As a transversal topic : the understanding and the good use of data and information systems.
DataPowa supports your teams in deploying and driving you procurement and inventory optimization plan, while capitalizing on the best practices:
Targeting : defining accurately contributing actions to optimize inventory, quantifying them in terms of operational and financial savings, precise the scope of the application, put them on the trajectory within timeframes aligned with budgets, prioritize them, define the responsibilities and associated key performance indicators (KPIs);
Deployment : roll-out the action plan in the field by improving sustainably the processes, sometimes also by carrying out some “quick win” actions, collaborating with customers and suppliers;
Steering : follow the progress of the actions in line with the trajectory and the priorities, measure the effects of the actions, reframe if necessary;
Capitalization : anchor practices acquired during deployment, document new processes, share best practices between sites and foster collective dynamics.
DataPowa develops pragmatic solutions to day-to-day problems in Supply Chain Operations, by taking advantage of the data value available in the ERP.
We especially built the DPIM app (DataPowa Inventory Management) which allows you to better structure, simplify and visualize your inventory optimization plan.