THE CHALLENGE
While inventory management has been optimized over years, the client struggled to understand the exact composition of its should-be inventory level and – looking at challenging markets – strived for optimizing inventory levels by realizing further unused potentials. Given the existing SAP environment, planning systems and processes, we were asked to increase transparency and make detailed inventory composition not only visible, but also derive inventory reduction proposals from these insights.
OUR APPROACH & SOLUTION
Understanding the data sources, system, exact planning procedures and existing planning issues of the client were crucial. We identified all relevant heuristics and parameters, and started to explain the inventory from safety stock over all company-specific components and figures up to the cycle stock and potentially existing residual. Using SAP BW, data has been connected and a report with complex calculation logics created to reveal data on a monthly base on SKU-Location level up to 36 months in the future. The solution has been revised in several iterations and rolled out to more than 150 business users within just 8 months.
THE RESULT & IMPACT
