The strategic function of the supply chain, besides efficiently carrying out the physical processes, shall be characterized by a clear entrepreneurial view about what shall be managed and its quantity, always according to defined goals of service level and costs.
The introduction of improvement actions in the field of stock management can and shall originate a simultaneous decrease in costs and an increase in the product availability, up to the best break-even point, which is unique to every Company.
Main areas of intervention
- Analysis and revision of processes, tools and Human Resources involved in the procurement phase;
- Analysis of the present stock situation (rotation, ABC, crossed ABC,
service level etc.);
- Analysis of maintenance costs per stock item and order issue costs, study of the demand typology and definition of forecast models;
- Estimate of the advantages coming from a better management of forecasts and stock;
- Optimizing policies for the stock and purchase management (push / pull, lots, reorder levels, safety stock, etc.);
- Assessment of the functional covering and suitability of the specific software tools already available (ERP); evaluation of the convenience to adopt advanced software tools;
- Reorganization of the purchasing department, in view of the Supply Chain and the adoption of advanced software;
- Support during the software and relevant procedure implementation phases;
- Periodical control of the efficacy of the adopted solutions through a new analysis of the performance data (service levels, stock rotation etc.);
- "Pilot" projects to reduce stock and/or improve service;
- Training and support to Purchasing Managers on the right use and parameterization of software modules and procurement company procedures.
Analysis of the present situation
Control of company goals (service levels, lock-up decrease), analysis of maintenance costs per stock item, stock-out costs and costs associated to order issue, with the purpose of checking the relation between stock management costs and service level.
Determination of the best solution
Classification of items according to demand features, definition of management policies and exploitation of the relevant operation parameters. Simulation of the results that can be obtained on the stock and service by applying classical techniques or through SCM (assessment procedure) advanced tools, evaluation of the efficacious applicability of the information tools already available in the company, evaluation of the technical/economic convenience of the use of specific software for the Supply Chain Management. Definition of the organization chart of the Purchasing Department and of the most suitable business processes.
Support to implementation
Introduction of operating procedures, parameterization of the newly acquired software programs or those already available in the company, interface with the other company programs/functions, and support during the transition phase up to the "steady state".
Monitoring of results
Periodical check, trough the application of auditing techniques, of the stock situation and the efficacy of chosen solutions, fine tuning of management parameters of the adopted system.