CUSTOMER STORY

Amara

MRO provider reduces network inventory and product obsolescence while improving customer service

Challenges

Everyday 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.

Results

Improved 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.

Day-to-day

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
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