Reduce Inventory Maintain Flexibility

Reduce Inventory Maintain Flexibility

Overview

More than 50 years old company engaged in manufacturing of Electrical Wire Termination Technology in India. The company is engaged in manufacturing of simple products, consist very complex processes. The final product’s different types of components/assemblies are manufactured at various locations. This multi-location processes make the product manufacturing process very complex. Apart from this there is one more challenge for the company & it is more than 3000 product varieties . To achieve on time delivery company has to carry finished goods inventory of more than 3000 products. On an average company was carrying inventory of more than Rs. 5.5 Crores .

Due to this challenges company was failing in delivering finished goods on the customer demanded date. This leads to keep them buffer stock of several items in huge quantity or sometimes run out of stock. This results high amount of inventory in Finished Goods Store or delay in delivery . This results in Loosing customer/orders, High Inventory Carrying Cost, Customer dissatisfaction due to delay.