Refrigerated Goods

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

  • Launch two pilot projects, one in an UK facility and the other in Europe, 

    • Developed and implemented new planning and control systems, including demand management.

    • Developed  new Inventory policy and prepared detailed inventory reduction plan 

  • Having demonstrated the concept, we are asked to roll out the programme

    • We trained their teams and provided direct support to projects in the four largest facilities

    • The rest of the facilities were supported through a series of events and workshops.

Results

 

  • Successful roll out of the programme

  • 22,5% reduction in inventory  across the major 6 facilities in year 1

    • UK pilot project resulted in a reduction in inventory of £1.5m in 9 months, against a target of £950k

    • On average days of inventory were reduced by 25% in year , with detailed plans to achieve a further 25% reduction in year 2 

  • Service levels going from mid 80s to over 95% in two years

  • Integrated planning systems, involving Sales function. 

  • New inventory policy detailed inventory reduction plans across all facilities

  • Improved demand management, capacity planning and inventory management processes.

  • Internal capability to support the ongoing actions and continuous improvement activities

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designed by S. Riley

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