LORRAINE CONSULTING INC.
excess inventory: Supporting Annual Sales & Cost reduction
An aerospace component manufacturer experienced excess inventory and future projections highlighted further buildup. Executives explored cost reduction strategies to lower capital. Careful to avoid a negative impact to annual sales, we searched for an optimal solution.
- Reduce net inventory
- Meet Customer Satisfaction goal of 95% OTD
Deep dive review into existing processes and implement detailed strategy
- Analyzed inventory accounts for reduction opportunities (Raw Materials, WIP, Finished Goods & Inventory Reserve)
- Suggested optimal inventory levels based on demand and customer safety stock requirements
- Targeted top inventory items for adjustments to MRP ordering policies
- Established automated control procedures and developed standard work
- Inventory reduction of 10% in 12 months
- Sustained 95% On-time Delivery to customer base