Managing inventories can get real challenging. In today’s competitive era, inventories in the supply chain pipeline can make or break the situation for any business. Hence tracking and maintaining optimum inventories is critical and also it is difficult to estimate where, what, how much is required. Over stocking has issues with blocking the working capital and under stocking has huge risks of opportunity loss attached to it.
Recently at Faber Infinite, we worked closely with a client struggling with inventory management and implemented an accurate and fitting Inventory Management Module based on scientific calculations developed by the team Faber Infinite. The system is capable of equipping the client to understand the current inventory situations, future state of inventory details, proposed savings in each component, what needs to stored and most important in what quantities.
It also assists in deciding how much to order and when to order. The system takes care of inherent delays attributed to either supply uncertainties or demand variations upto 2 sigma levels. With the Kanban system implemented at the client site, the system gets more flexible, responsive and agile now. Reduction in wasted efforts / wasted time, the unnecessary time wasted in searching and managing excess inventory comes as cherry on the cake.
The scientific inventory management module is industry neutral and has capability to resolve supply chain and inventory issues from the root in any organization.
The overall savings in inventory value for the said engagement (after implementation of inventory management module) is estimated to be approximately 41%. This saving is a mix of positive and negative savings. Positive saving is achieved by controlling over stocking while negative savings results are to avoid under stocking.
By Anand Bhattad
Anand works as an Associate Consultant at Faber Infinite. He holds Masters a degree in Business Administration with majors in Operations and Bachelors in Mechanical Engineering being his first degree.