MRO provider reduces network inventory and product obsolescence while improving customer service
ChallengeEveryday Amara faces the challenges of MRO environments from products with intermittent demand and low inventory turnover to a complex network. It was seeking to reduce MRO inventory throughout the network and stock obsolescence while improving its customer service levels.
ResultsImproved customer service levels Improved working capital 38%; 12% MRO inventory reduction in 6 months, combined with 22% sales increase Optimized the replenishment process 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.
SO99+ handles Amara’s two-tier distribution network, which includes a central warehouse and other secondary storage sites.
SO99+ manages Amara’s MRO inventory items with extremely varied and dynamic sales characteristics, a wide variety of markets, and restocking on a daily basis. SO99+ also restocks between warehouses in order to avoid obsolescence of low turnover items.
Results & Benefits
With SO99+, 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