View
230
Download
0
Category
Preview:
Citation preview
7/31/2019 Acme Case Study Outcome
1/7
7/31/2019 Acme Case Study Outcome
2/7
Solution
Strategy
Set & communicate goals for entire company: Flat decided to focus majority of effort and
resources on flat product inventory managementGoal: Reduce $10-15 million in inventory
Assigned key Executive to flat inventory goal
Extrusion since the purchase order size is significant
to maintaining the margin, which is a critical companygoal and the inventory is highly specialized andreserved, it was decided to make this a 2nd priority toflat.Goal at a minimum, keep inventory levels flat
(reduce if possible)
7/31/2019 Acme Case Study Outcome
3/7
Solution
People
Each branch assigned an Inventory Managerand/or resource to be responsible for inventorylevels and coordination Larger branches dedicated resources
Smaller branches resources not fully dedicated butinventory was considered a key priority
Reviewed the skillsets required for the role vs.potential candidates promoted from within toget the right people in the right roles
Developed a team set common goal, invested
in training, meetings etc.
7/31/2019 Acme Case Study Outcome
4/7
Solution
Process (High Level)
Metrics developed inventory metrics (bybranch, by product line) and tracked daily =
management focusPay tied pay to performance/ metrics
(inventory became one of the key componentsfor bonus for ALL functions)
Focus the Executives emphasized theimportance of inventory and it became one ofthe key topics during branch meetings/conversations
Communication/ Priorities - Held monthlymeetings with all Inventory Managers, Branch
7/31/2019 Acme Case Study Outcome
5/7
Solution
Process (Inventory Planning)The Inventory Executive, Inventory Manager/
resource, Branch Manager and other key partiesmet to review specific contracts, inventory, etc
developed plans to address for each specificbranch/ contract
Identified and cleaned up data integrity issues
Developed overstock lists and worked with Sales
to sell off inventoryDeveloped process to check rems to make sure
to utilize available inventory prior to placing anew PO
Completed a review of reserved inventory for
7/31/2019 Acme Case Study Outcome
6/7
Solution
Process (Inventory Planning)Developed process to share inventory among
branches and encourage transfers when best fortotal company bottom line (Inventory Managers
met to review common items once a quarter atminimum in person and weekly by conferencecalls)
Provided inventory planning training
Worked with mills / customers to increase theuse of material via spec combinations etc (canuse same item to fill more customer orders)
7/31/2019 Acme Case Study Outcome
7/7
Solution
Process (Inventory Planning)Reviewed incoming POs for opportunities to
push out or cancel if possible
Developed a rough S&OP (sales and operationsplanning) analysis and meeting process evolved over time with improved people,process, and tools
Technology/ Tools
Leveraged the Excel tool (poor mans MRP)Updated based on Inventory Manager input
Provided training
Utilized for S&OP process
Developed Additional reports to manage
Recommended