An industrial equipment manufacturer had historically dealt with a significant inventory build up due to high fluctuation in demand and level loading practices to balance throughput rates and level out the production process. As production expansion would continue to cannibalize storage space, Miebach Consulting developed a new outsourced material management concept that eliminated double handling and leveraged the growing standardization in supplier systems.
Design material management for raw materials, spare parts, and finished goods
Optimize in- and out-bound material flows between plants and warehouses
Evaluate the growing space requirements and potential for outsourcing
Increased inventory visibility by reducing storage locations from 5 to 2
Reduced working capital of $2 M resulting from inventory consolidation
Savings of $3 MM in OPEX through identified 3rd party logistics collaboration