Benchmarks & Client Cases
Spare Part Stock Reduction in Assembly
• High stock level of spare parts: excess number of SKUs in large volumes
• Criticality criteria of parts not clear: same management processes for all parts
• Lack of supplier service level compliance: high Lead Times and errors
• Complex computer system for calculation of replenishment points: lack of knowledge leads to poor utilisation of tools
• Lack of trust in available stock management information
• Limited visibility of stock reservations
• Design of a new system for classification of parts and replenishment point calculation
• Value Analysis Value Engineering to reduce the number of SKUs
• Renegotiation of supplier Lead Times and design of classification standard
• Reservation status follow-up board: visual and accessible by all team members
• Development of consignment contracts
• Standardisation of the inventory process
The project generated annual savings of £877,000.
Average Stock Value
Average stock value reduced by 26%
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