Company: INDUSTRIAL SECTOR.
French company dedicated to the manufacturing of fluid pump equipment for the industrial sector. The General Director was concerned about the large amount of stock of components and the necessary working capital for productive activity. Customer service was poor and the market required an increased production capacity.
An in-depth analysis of the industrial area detected that the company had a bad model of procurement and poor management of suppliers. Likewise, they never forecasted the sales supplies nor the scheduled production activity levels in order to plan out what components were necessary.
- The procurement parameters were redefined and adapted per component supply, according to the demand and service level for each product family.
- New models were defined and implemented: procurement of components, management and monitoring of suppliers.
- The process of business forecasting and production planning was improved, and its transfer to supplies.
- The average stock of components needed was reduced from €900,000 to €300,000, and overstock went from €400,000 to €60,000, whilst increasing the delivery capacity from suppliers.
- Customer service increased from an initial level of 45% to a monthly average of 80%.