Supplyvue in practice: Construction
Applying segmentation methodology to spare parts supply management
CHALLENGE
APPROACH
AS-IS ASSESSMENT
SUMMARY DIAGNOSTIC
FUTURE STATE
BUSINESS IMPACT
CHALLENGE
An engineering business has to manage a complex situation of supplying parts for first time construction as well as ensuring spare parts are available for repairs and refurbishments. The demand profiles for each item are therefore complex to manage, but supporting both parts of the business with high levels of service is vital to the success of the business. The business was achieving inventory availability but struggling to keep inventory levels under control, so the challenge was to find inventory reduction opportunities.
APPROACH
The team used SupplyVue to segment the demand for parts into 36 granular boxes of like types of demand and analyse the flow of parts through the supply chain for each of the segments, analysing the replenishment policies and parameters and the resulting inventory levels and availability.
AS-IS ASSESSSMENT
Inventory levels & replenishment process
AS-IS ASSESSSMENT
Replenishment lead-time analysis
AS-IS ASSESSSMENT
Sales Profile
AS-IS ASSESSSMENT
Replenishment lead-time analysis
AS-IS ASSESSSMENT
Inventory cover and policies
SUMMARY DIAGNOSTIC
Stable and consistent weekly demand
Short and reliable lead times
High inventories across all segments
Lack of policies at segment level
FUTURE STATE
BUSINESS IMPACT
70% inventory reduction
More stable factory operations
Reduced inbound materials costs due to improved stability
