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Case Study: industrial holding company in the construction area

Inventory Management

Customer

Industrial holding company specializing in the manufacture of building materials and solutions.

It has a network of more than one hundred companies and a presence in 43 countries throughout the world, with an important Latin American presence (Brazil, Colombia, Peru, Argentina and Chile).

Challenge

The company had a low level of standardization of practices and inventory replenishment policies in its various subsidiaries.

In addition, a high percentage of SKUs were slow-moving and had more than 52 weeks of inventory in stock.

Levers

  1. Classify the Inventory.
  2. Analyze the criticality of SKU’s, rotation and consumption frequency.
  3. Design a replenishment model for the determination of safety stocks, replenishment points and order size.
  4. Conclude on an inventory model for raw materials, finished product and spare parts, with optimal replenishment quantities.

Results

-37%

Total inventory, due to the optimization of the inventory model.

-39%

Inventory of raw materials.

-38%, -35%

Spare parts and finished goods inventory, respectively.

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