A high volume multisite planning systems and inventory reduction programme
Background
The European division of a high volume manufacturer of food packaging, with over 25 facilities across the continent. The businesses were preparing for a global deployment of SAP and were facing the challenge of too much cash tied up in inventory. We were asked to prepare and support a 12 months programme to deal with the lack of robust planning and control processes and reduce inventory
What We Did
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Launch two pilot projects, one in an UK facility and the other in Europe,
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Developed and implemented new planning and control systems, including demand management.
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Developed new Inventory policy and prepared detailed inventory reduction plan
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Having demonstrated the concept, we are asked to roll out the programme
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We trained their teams and provided direct support to projects in the four largest facilities
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The rest of the facilities were supported through a series of events and workshops.
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Results
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Successful roll out of the programme
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22,5% reduction in inventory across the major 6 facilities in year 1
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UK pilot project resulted in a reduction in inventory of £1.5m in 9 months, against a target of £950k
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On average days of inventory were reduced by 25% in year , with detailed plans to achieve a further 25% reduction in year 2
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Service levels going from mid 80s to over 95% in two years
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Integrated planning systems, involving Sales function.
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New inventory policy detailed inventory reduction plans across all facilities
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Improved demand management, capacity planning and inventory management processes.
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Internal capability to support the ongoing actions and continuous improvement activities
