DEMAND FORECAST AND STOCK MANAGEMENT
Simco Consulting can support your company in the stock management, providing advanced consulting services. The strategic function of the supply chain, besides efficiently carrying out the physical process shall be characterised by a clear entrepreneurial view about what and in what number shall be stock handled, according to defined goals of service level and costs. The introduction of improvement actions in the field of stock management can and shall originate a simultaneous decrease in costs and an increase in the product availability, up to the best break-even point, which is unique for each Company.
STOCK MANAGEMENT: MAIN AREAS OF INTERVENTION
- Analysis of present stock situation (rotation, ABC, ABC cross analysis, service level, etc…);
- Analysis and process revision, tools and know-how of the human resources involved in the re-stocking phase;
- Analysis of the stockholding costs per stock item and order issue costs, study of the demand and definition of the best forecasting;
- Estimation of the advantages deriving from an optimized management of forecasts and stocks;
- Optimizing policies for the stock and the purchase management (push/pull, lots, reorder levels, safety stock, etc…);
- Assessment of the functional coverage and suitability of the already available specific software tools (ERP); evaluation of the convenience in adopting advanced software;
- Reorganization of the procurement department from the supply chain perspective and the adoption of advanced software;
- Support during the implementation of the software and the procedure implementation processes;
- Periodical check of the efficiency of the adopted solutions through a performance data re-analysis (service level, stock rotation, etc…);
- “Pilot” projects to reduce stock and/or to improve service;
- Training and support to Procurement managers on the right use and parameterization of software modules and procurement company procedures.
STOCK MANAGEMENT: THE METHOD
ANALYSIS OF THE PRESENT STATUS
Check of the company goals (service level, lock-up decrease), analysis of stockholding costs per stock item, of stock-out costs and costs associated to order issue, with the purpose of verifying the relationship between stock and management costs and service level.
DETECTION OF THE OPTIMAL SOLUTION
Classification of items according to demand, definition of stock management policies and exploitation of the relevant operation parameters (safety stock, economic order quantity, reorder point). Simulation of the obtainable results on the stock and service both by the application of traditional techniques or by SCM advanced tools (assessment procedure). Evaluation of the effective applicability of the information tools already available in the company and evaluation of the technical/economic convenience to use specific software for the supply chain management. Definition of the organization chart of the procurement department and the most suitable business process.
SUPPORT TO THE IMPLEMENTATION
Operating procedure introduction, parameterization of the newly acquired software program or of those already available in the company, interface with the other company program/function and support during the transition phase up to the “steady state”
MONITORING OF RESULTS
Periodical check, through the application of auditing techniques, of the stock situation and of the efficiency of the chosen solutions, fine tuning of management parameters of the adopted system.