Results
- Over $2.5 million annual savings in inventory loss reductions were identified and made possible
- Established an Inventory Management Department and optimized headcount for the client
- Defined, designed, and implemented both manual and e-based inventory systems
- Validated the client's production cycle, identified all touch points, and developed an inventory loss control process and related procedures for client personnel
- Better inventory control allowed the client to reduce inventories to align them with production capacity, improve production planning capabilities and streamline production
The Situation
Through an innovative upstream acquisition, a diverse Global Fortune 100 company acquired the manufacturing capabilities of a smaller family-owned specialized garment sewing company. While the inventory, both raw material and finished product, was the property of the larger company, the "acquired" entity had complete responsibility for inventory management. Further, while the larger company had a fully-integrated and developed IT system, the smaller company suffered from a lack of systems, and could not be functionally integrated with the larger company. During the first year of operations under the combined structure, the smaller company suffered significant inventory shrinkage and was facing the same problem as it moved into the second year. The company needed to develop an e-based inventory control system for ongoing use. Additionally, it needed to develop and immediately implement a "stop-gap" manual system fully capable of bridging the time span necessary to define, identify, develop and implement the e-based system.
INTELLAPRO used its Intelligent Process™, an adaptable, flexible methodology, to systematically characterize, dissect, map, and improve business processes for the client. INTELLAPRO prepared detailed workflows, designed cross-functional process maps and developed a tactical plan, which leveraged knowledge harvested from on-site personnel, into a manageable and repeatable control process. INTELLAPRO also developed a variety of management tools, reporting formats, and standard operating procedures while overseeing the birth and metamorphosis of an effective and focused Inventory Management Department. INTELLAPRO identified and validated all potential savings with touch points throughout the process.
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