Procured Goods Stock
inventory management
Context & objectives
Procured Goods Stock (PGS) represent ~1b€
Following COVID crisis, need to reinforce PGS analytical capabilities to :
- Better understand evolution at part level
- Identify optimization drivers & relevant target
Stock forecasts methodology required to define relevant stock level (value / coverage) on each part and take concrete optimization actions :
- Visibility within next 12m window
- Emergency stop ordering for parts with high coverage or for future non movers
- Ordering parameters adjustments (safety time, safety stock,…)
- Support to negotiations with suppliers to be protected
Need to change paradigm for 400 operational supply officers to develop stock coverage culture
Results
Full PGS diagnosis with main drivers (demand,requirements, quality issues, transfers…)
Forecast models developed at part level, integrating demand horizon flexibility (firm, flexible, provisional) and complex flow management (internatco, drop shipment…)
Recommended stock level proposed according to :
- Operational risks to be covered
- Stock availability & rotation (non-movers,…)
Drivers for optimization identified at PN level with an overall reduction of X0% vs baseline through :
- Ordering parameters adjustment
- Scrapping opportunities (current & future)
- Process improvement
- Data quality
A dynamic & recurring dashboard to report & deep dive :
- at management level
- at supply officer level (ordering param.)
- with a granularity down to part number
Operational routines set up with supply officers to steer stock performance & priority optimization actions
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