Multi-site FMCG manufacturer

Challenge

Whilst the client had appointed a new Engineering Manager to a new site, the manager did not feel that he had a full appreciation or control of the inventory status and mix of his stores.

As part of the client's corporate Continuous Improvement Programme, we were tasked with developing a full stores development project.

Objectives

  • To illustrate the exact position of the stores value and inventory mix, and determine any inefficiencies.
  • IESA was also given an additional stretch target of making space available within the stores by removing obsolescence and improving the store layout.
  • This space would be utilised for additional engineering workshop space.

Solution

IESA's fully-integrated stores management system consists of a stock reduction process, product rationalisation followed by a reorganisation of the stores layout.

The process, in consultation with the client's engineers, identified the exact stock position and mix, and any obsolete or slow-moving stock.

The stores area was also reorganised according to the size and nature of the products and asset grouping, with particular emphasis on fast-moving products.

Benefits

  • IESA was able to hand back 20% of the stores floor area for urgently-required engineering workshop space.
  • This was achieved by reducing the original stock holding, which had a value of £880,000.
  • Some of the stock items were identified as common group parts and were transferred to sister group sites.
  • A proportion of the obsolete parts were sold to an IESA identified buyer with £225,000 provided to the client's engineering budget.