How we helped balancing stock & service in the energy industry

Customer Challenge

A Belgian Utility Company wanted to significantly reduce the amount of working capital invested in inventory. The company has a diverse mix of products, some with very stable demand and supply, while other product families would be highly unpredictable.

Approach

  • Statistical assessment of core supply / demand information.
  • Assessment of Replenishment Process & System.
  • Product / Customer Segmentation in order to improve key Replenishment parameters for each Segment.
  • Development of Reports to show evolution.
  • Deliver updated Inventory Management Policy.
  • Updated parameters in ERP – Planning System.
  • Train customer’s planners on the process & the optimisation techniques.

Results

  • A reduction of 25% of stock on hand (a several M-EUR free up of working capital).
  • Managed to realise Customer Service Level (product availability), in combination with reduced inventory.

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