01-GG-Case-Study-Small-Metal-Parts-Company

For the efficiency of the Warehouse to be improved, a control system was implemented, generating a 15% cost saving

Topic

The owner of a company, active in the bolts sector, has been experiencing a series of inefficiencies relating to the internal warehouse that every year affected the company’s profitability; so that he proceeded to entrust us to analyze the causes and identify the types of products most difficult to be marketed.

Critical Issues

From an early analysis on the Warehouse Management System, a high presence of data emerged, as the transition to the new Management System had created a redundancy in the coding of the products.

As a matter of fact, the same types of articles with different coding had been entered, which made it difficult to reconcile with actual inventory.

All this made it problematic to extrapolate the truly useful information on the different types of products stored and their turnover rate.

Performed Activity

Spreadsheets were developed that are able to monitor the turnover rate of the various product categories by grouping all those products that had not been moved for some time into homogeneous categories.

Output

The results achieved were a 15% savings in Warehouse Costs.

The professionals of G&G Consulting have supported the company in improving the Buying Office and slow-moving goods management.