ILOS consultancy allows a 12% reduction in financial inventory costs in a company in the oil and gas sector.
A company in the oil and gas segment faced challenges related to increased demand and the variety of products sold, which resulted in limitations in storage space. In addition, the process for defining inventory levels was outdated, unstructured and decentralized, requiring review.
To overcome these challenges, the company hired ILOS, which was responsible for mapping out a series of strategic solutions. First, the current inventory policy was redesigned, establishing specific models and parameters for the different product categories. Next, a strategy was adopted to expand warehouse capacity, ensuring greater operational flexibility. Details of the implementation steps for the new policy were carefully designed, while a calculator was developed and delivered to the client to facilitate the review of the parameters used in calculating the inventory policy.
The recommendations envisaged a reduction of up to 12% in financial costs with inventories and an increase of 25 percentage points in the average service level for finished products, indicating a possible substantial improvement in operational efficiency. A 12% reduction in the need for pallet positions for storage of finished products was also estimated, further optimizing space management.
ILOS are experts in reviewing inventory and storage policies for companies across all sectors.
project type
- Structuring of inventory policies
- Reduction of logistical costs
Segment
- Oil and gas
ILOS consultancy allows a 12% reduction in financial inventory costs in a company in the oil and gas sector.
Challenge
A company in the oil and gas sector suffered from a lack of space to store products and an inventory policy that was inadequate for its reality
ILOS solution
- ILOS has redesigned its inventory policy, defining specific models and parameters for different product categories
- ILOS proposed a strategy to expand the company's storage capacity
- ILOS has developed a calculator to support the review of inventory parameters
Results
- Calculated reduction of 12% in the need for pallet positions for storage of finished products
- Possible reduction of up to 12% in financial costs with inventory
- Possible increase of up to 25 pp in the average service level for finished products
