VCIO

Reducing Inventory Cost, Increasing Availability


Industry Challenges

  • Do you need to better classify your items, know their criticality, understand the stock out cost and risk to your business, reduce unnecessary inventory and enhance visibility to obsolete/duplicate and obsolescence material?
     
  • Perhaps you just don’t have that supplier relationship with your key vendors just yet. Are you able to manage your vendors, measure their material delivery performance, or other qualitative criteria with assigned weightings? Can they easily capture quality issues against material coming in, retrieve spend to make better decisions and capture and analyse other key procurement data like what it’s costing you to process a transaction.
     
  • Do you understand the utilisation of your warehouses, the type of items you stock, are they fast, slow or dead moving, can you reduce maverick spend and hold more items on contract? Perhaps your cataloguing process can be improved; the efforts to bring on a new item streamlined, increase visibility and ensure a dedicated approval process is in place with all the right stakeholders, to ensure only genuine required new items are being catalogued and duplicates are reduced.
     
  • Reporting and analysis is always important to making better management decisions, because the Supply Chain wants to add value to the organisation and not seen as an area of expense. Can you quickly interrogate one screen or run a report and find thousands or millions of dollars of duplicates or obsolete stock which can improve the bottom line?
     
  • Remove guesswork, reduce manual and time consuming processes, increase visibility and transparency, improve relationships, reduce risk and add valuable dollars back to your bottom line.

The Solution

ABB Critical Inventory Optimization is a suite of specialist software tools that leverage existing data to drive enhanced enterprise performance. The solution automatically identifies and analyzes key data to assess the impact on varying the stock levels of every item. Once this assessment is complete, adequate stock levels, lead times and critical items can be determined, giving businesses a better indication of what they need and when. ABB Critical Inventory Optimization is a powerful, customizable and proven solution that provides maximum flexibility. The solution, which can integrate and operate with any ERP/EAM

ABB Critical Inventory Optimization is a suite of specialist software tools that leverage existing data to drive enhanced enterprise performance. The solution automatically identifies and analyzes key data to assess the impact on varying the stock levels of every item. Once this assessment is complete, adequate stock levels, lead times and critical items can be determined, giving businesses a better indication of what they need and when.

ABB VCIO

The Benefits
ABB critical Inventory Optimization provides visibility into how the calculations are made and the ability to change calculations to match specific requirements. The solution automatically fine tunes and re-tunes performance on a continual basis to ensure that maximum performance is sustained at all times.

Benefits include:

  • Improved availability and reduced stock-outs of critical items.
  • Reduced working capital tied-up in inventory.
  • Improved vendor performance.
  • Increased efficiency and effectiveness of cataloging, resulting in consistent catalog descriptions and classi?cations and the removal of duplicate holdings.
  • Improved productivity in the supply function. The simple yet sophisticated architecture enables the solution to be interfaced simply and seamlessly with any existing ERP/EAM(s) and implemented quickly for rapid and quantifiable return on investment.
  • ABB Critical Inventory Optimization aligns the interests of maintenance and supply to achieve inventory levels that meet the productivity demands of the organization without holding excess inventory, while also enabling supply to measure and optimize cataloging, warehousing and vendor management.

ABB Critical Inventory Optimization is a powerful, customizable and proven solution that provides maximum flexibility

Statistical Inventory Analysis
Maximizes availability of plant and equipment and frees up working capital by ensuring that stocking levels of both production critical and non-critical items are maintained at the optimal levels needed for day-to-day operation.

Vendor Scorecarding
Ranks and reviews vendors so that good performance can be rewarded, discrepancies tracked and reported on, and poor performance managed.

Warehouse Scorecarding
Produces tailored performance scores based on measurement of KPIs of the warehouse(s) and identifies areas of improvement

Cataloging
Improves efficiency in cataloging new items, improves catalog accuracy and provides workflow management that includes all stakeholders.