Optimized Inventory Management with OptiStock
ScottMadden assists organizations with inventory management and optimization. Contact us for a demo of our OptiStock tool and to learn how we can help support your planning goals.
At a Glance
Data Driven Insights
- Enhance decision-making with data-driven insights by applying the best-fit, discrete statistical distribution model to every inventory item at every location
Optimize Stock Levels
- Reduce excess inventory holding costs by optimizing stock levels
Prevent Delays
- Prevent project delays with improved restocking criteria based on statistically derived usage profiles
Challenge
A midsize infrastructure company was confronting critical challenges, notably deteriorating lead times for key materials, excessive capital tied up in overstocked inventory, and the risk of project delays due to inventory shortages. Compounding this situation was the reliance on subject matter experts to manually determine appropriate stocking levels, without the support of statistical analysis, leading to inefficiencies in inventory management. These circumstances underscored the urgent need to optimize inventory stocking levels and implement an automated analysis solution to replace outdated manual processes. The resulting solution enhanced operational reliability and armed the supply chain organization with the rigorous analysis necessary to justify appropriate material additions and reductions.
Process
- Engaged with subject matter experts across the organization to understand the existing inventory management processes and challenges
- Collaborated with the client project team to establish an item service level framework
- Deployed OptiStock, an inventory optimization tool, to recommend stocking levels for every item through statistically derived stocking criteria
- Conducted review sessions with key personnel to validate the system recommendations and fine-tuned parameters based on feedback
Result
- Identified millions of dollars of inventory drawdown opportunities and avoided purchase costs
- Flagged materials that were understocked based on desired service levels and deteriorating lead times
- Freed up capital by minimizing unnecessary inventory holdings
- Enhanced stocking criteria decision-making with OptiStock’s semi-automated, user-friendly interface for efficient inventory management
Related Insights
Returns-Based Inventory Growth Control
Case Study
A vertically integrated, investor-owned utility was experiencing substantial long-term growth in its inventory levels. ScottMadden was engaged to assist in identifying the root causes of the growth and…
Supply Chain Strategy Development and Alignment
Case Study
ScottMadden assisted a large Midwestern investor-owned utility to improve its supply chain organization’s strategy, governance, and operations including the supply chain organization’s relationship to the business units…
Achieving Strategic Focus to Improve Supply Chain Performance
Case Study
A large, municipally owned utility sought assistance with an assessment of their supply chain function. ScottMadden was engaged by the client’s executive management team to complete the…
Let’s Work Together
We don’t solve problems with canned methodologies. We help you solve the right problem in the right way. Our experience ensures that the solution works for you.