Managing a large inventory of materials, from raw materials to finished goods, is a complex task. Our client faced the challenge of improving the effectiveness and efficiency of inventory planning, reducing the effort involved in inventory management through automation, and simultaneously increasing the availability of key components while maintaining low inventory levels. Manual processes led to uncertainties and additional work in inventory management and made it difficult to adapt to changing demands along the supply chain.
“In our project with EMPORIAS, we have developed a differentiated planning strategy for the procurement of purchased parts and manufacturing, which enables targeted inventory management. Through the direct implementation of the PFEP (Plan For Every Part) and a newly defined material class concept in our SAP add-on GIB Controlling (formerly DCC), we are jointly ensuring the realization of potential, which includes not only a reduction in inventory while simultaneously increasing material availability but also a reduction in planning effort. We greatly value our collaboration with EMPORIAS due to the expertise they bring, their strong implementation capabilities, and their integration into our organization.”
Together with our client, we developed a sophisticated material class concept using Plan for Every Part (PFEP), which enables the automatic assignment and regular optimization of optimal inventory management strategies. We conducted an analysis across the entire supply chain—from finished goods to raw material inventories—to identify potential savings and develop optimization strategies. Parameters such as safety stock, reorder point, and minimum order quantities were gradually optimized collaboratively to achieve cost savings and quality improvements. In addition to our BI-supported analyses and simulations, cross-functional workshops aimed at increasing acceptance of the new system were a key focus.
The segmentation of the product portfolio from an end-to-end perspective, along with BI simulations of the effects and interdependencies within the supply chain, were key factors in the project’s success. The realization of this potential was ensured by the customer’s broad acceptance of the new concept and the implementation of automation.
The new material class concept led to a selective increase in safety stock levels for key components, which has improved material availability. Inventory levels were sustainably reduced for 95 percent of items. By utilizing automated processes in GIB Controlling—a software application from our partner IFM Business Solutions—and by stabilizing the supply chain, the effort required for inventory planning was significantly reduced. The creation of anautomated set of rules within the GIB modules lays the foundation for future-proof inventory management.
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