Project requirements
Project timeline:
The Fast Pack inventory management optimization project involved the implementation of the INTUIFLOW automated system to manage all active buffered and back ordered inventory, which includes more than 10,000 SKUs with lead times from 3 to 200 days. The project was implemented in 3 stages, each of which involved training of project team members.
Preparation for the launch
Preparation of data for use in the automated inventory management system, creation and deployment of the INTUIFLOW information base. Managers and specialists from the sales, procurement, and warehouse logistics departments underwent a two-day training on the DDMRP methodology. Fast Pack IT specialists set up file exchange between ERP and INTUIFLOW. The project team standardized the parameters of each SKU: lead time, order cycle, minimum batch, multiplicity. By systematizing and parameterizing SKUs, Fast Pack project participants applied a single way to calculate orders in INTUIFLOW and a clear priority for planning their execution.
Launch of the inventory management system
This stage included two user training courses for each section of the program, followed by testing. Next, we corrected data errors, modeled the process of accepting and processing orders, and calculated buffers. The consultants supported the managers' work with the first orders received in the new system. The goals achieved included building employee confidence in the program and getting them into the habit of starting their working day in INTUIFLOW.
Preparing employees for independent use of the INTUIFLOW methodology and program
The staff was trained to work with analytics and cloud solution settings using the Demand Driven Planner Professional training program. The program parameters were also configured, optimal production and supply cycles were calculated, and recommendations were made to improve inventory turnover. The management of the automated system covered the entire Fast Pack assortment, and work with alerts, reporting, and analytics was launched. The third stage was dedicated to the full use of the program functionality.
Results of INTUIFLOW:
The results for FAST PACK:
The project to implement the INTUIFLOW automated inventory management system was completed as planned in six months. Each stage lasted two months. The company managed to achieve key results even though during the pandemic, the level of supplier service decreased, while lead-time increased by 30%, and demand volatility increased.
Qualitative changes:
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The process of ordering goods from manufacturers has been fully automated
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The company has managed to overcome the phenomenon of bimodal distribution, in which a significant number of SKUs are in short supply, many items are overstocked, and only a small number of SKUs are at the optimal level
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The flexible and timely response of the system to fluctuations in actual demand is ensured by using the functionality of the INTUIFLOW cloud solution (dynamic changes in buffers, correction factors, etc.)
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The probability of errors due to human error has decreased. Most of the decisions and calculations are made automatically, according to system algorithms
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Staff time has been used more efficiently. The automated system performs routine repetitive operations, allowing managers to focus on solving creative tasks
Customer review:
Irina Yurchenko
Head of Procurement Department, FAST PACK
"We chose DDMRP because this methodology has absorbed the best experience in global supply chain management, united by a block of innovations".
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