Customer Story
Amara
MRO Provider Reduces Network Inventory and Product Obsolescence While Improving Customer Service
Amara, facing a challenging MRO environment, sought to reduce MRO inventory and stock obsolescence while improving customer service levels. These goals were achieved with the ToolsGroup solution.
Results at a Glance
Amara, facing a challenging MRO environment, sought to reduce MRO inventory and stock obsolescence while improving customer service levels.
Customer Service
Improved customer service levels
Working Capital
Improved working capital 38%; 12% MRO inventory reduction in 6 months, combined with 22% sales increase
Replenishment
Optimized the replenishment process
Obsolescence
Reduced of product obsolescence
Project & Objectives
Amara faces the challenges of MRO environments from the efficient management of a large number of products with intermittent demand and low inventory turnover to a complex distribution network. The company’s objectives were to:
- Improve the level of customer service
- Reduce MRO inventory levels throughout the network
- Optimize and improve the purchasing and replenishment process
- Optimize the logistical network
- Increase flexibility in inventory management to adapt to a changing market
- Reduce stock obsolescence
Amara was looking for a tool that supported the company’s decision making, both for creating scenarios and for the creation of sales, stock and purchase reports.
Day-To-Day
The ToolsGroup solution handles Amara’s two-tier distribution network, which includes a central warehouse and other secondary storage sites.
The ToolsGroup solution manages Amara’s MRO inventory items with extremely varied and dynamic sales characteristics, a wide variety of markets, and restocking on a daily basis. The ToolsGroup solution also restocks between warehouses in order to avoid obsolescence of low turnover items.
Results & Benefits
With the ToolsGroup solution, Amara achieved the following benefits:
- An improvement in customer service levels
- A 38% working capital improvement; consisting of a 12% MRO inventory reduction in 6 months, combined with 22% sales increase
- Optimization of the replenishment process
- Reduction of obsolescence products
- Support for the decision making of the company
