ILOS projects up to a 15% reduction in inventory costs through the application of a new supply policy at an energy company.
A natural gas distribution company had slow processes for acquiring materials, poorly sized inventory levels, and a decentralized demand planning process, impacting the level of service.
The consulting firm ILOS structured an integrated operations and materials process to ensure better demand planning. A new procurement strategy and inventory policies were defined to better serve the customer.
The projected results indicated an increase in the service level (99% probability of no stockout) along with an approximately 15% reduction in inventory costs.
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project type
- Structuring of inventory policies
Segment
- Oil and gas
Up to 15% reduction in inventory costs for an energy company.
Challenge
- The distribution company had slow and non-standardized processes for acquiring materials.
- Inventory levels were unbalanced and poorly sized.
- The demand planning process was decentralized.
