Taking stock and making all inventory items count

Delivering successful client and project outcomes for 20 years.

Lumify People (previously DDLS People) was tasked to review the alignment of stock codes with business rules for existing and new inventory management systems. Comprehensive data analysis and remediation were undertaken, along with embedding knowledge with the client team for post-project process management.

LFY PEOPLE CASE STUDY IMAGES (600 × 400px) Taking stock and making all inventory items count


Challenge

The client needed to determine the current state of stock-keeping records to determine how many stock codes aligned with the Electronic Supply Chain Manual (ESCM) business rules. Further, the stock codes needed to be ready to use under the implementation of the Advanced Inventory Management System (AIMS).

Stock codes were extracted from information systems and over 15,000 stock numbers were found, broken into individual stock types, then stock was checked and counted.

Careful review showed that volumes of stock numbers were incorrectly identified in the logistics system, requiring realignment.


Solution

The Lumify People team formulated a comprehensive project plan with clear milestones and metrics, with careful attention to timelines and budget.

Milestone 1

  • Determine the magnitude of the problem, and scope of the remediation work required

  • Review each stock-keeping unit (SKU) against a range of systems, data requirements and inventory segments

Milestone 2

  • Project plan created and reviewed by client team

  • Project plan and timelines agreed

  • Deliverable work packets specified over an approximately eight month timeframe

  • Sustained work program for first three months, then more sporadic requirements for the remainder of the project

Milestone 3

  • Enhancement of skills and knowledge within client team for more efficient processes post-project

  • Target functions included inventory, purchasing, repairable items and cataloguing/codification staff

  • Groups sessions and one-on-ones were utilised to impart new skills and knowledge

Milestone 4

  • Regular Agile deliverables of discreet packets of SKUs

  • Bulk Data Upload functionality utilised for faster upload and remediation timeframes (estimated that at least six months of manual work saved)

  • Data reviewed for errors then manually addressed by Lumify or client team members

  • More than 40 spreadsheets created and used

  • Spreadsheets retained and absorbed into client workflows post-project


Outcome

The project was deemed a success based on a number of diverse criteria:

  • Deleted records have resulted in the reduction of carrying costs

  • More than 6,000 items reduced in holdings

  • Approximately 2,000 items returned to source locations for program support, rather than remaining stagnant in other locations

  • Hundreds of incorrect inventory segment codes have been corrected

  • All areas of the supply chain have benefitted from the project completion

  • Client team more capable to adapt to drive better organisational outcomes

The project was completed within the estimated timeframe, and Expended Hours were less than Budgeted Hours, helped by the fast assimilation of various aspects of the program by the client team.