Background

Our company is a large distributor of industrial supplies, serving customers across the country. We maintain a large inventory of products in our warehouses to ensure that we can meet customer demand quickly and efficiently. However, we were experiencing issues with our safety stock levels, which were causing delays in fulfilling orders and increasing costs.

Problem

We had been using a manual process to determine our safety stock levels, which was time-consuming and prone to errors. As a result, we often found ourselves with too much inventory of some products and not enough of others. This led to delays in fulfilling orders and increased costs due to excess inventory and expedited shipping fees.

Solution

To address this issue, we formed a cross-functional team consisting of members from our operations, finance, and IT departments. The team worked together to develop an automated system for calculating safety stock levels based on historical demand data and lead times for each product.

The new system allowed us to more accurately predict demand for each product and adjust our inventory levels accordingly. It also provided real-time visibility into our inventory levels, allowing us to quickly identify potential shortages or excesses before they became problems.

Impact

Reduced excess inventory by X%
Decreased expedited shipping fees by X%
Improved order fulfillment times by X days
Increase in customer satisfaction ratings by X points

Team

Jane Doe - Operations Manager
- Oversaw the implementation of the new system and provided guidance on operational requirements.
John Smith - Financial Analyst
- Provided financial analysis and modeling to help determine optimal safety stock levels.
Sarah Lee - IT Project Manager
- Oversaw the development and implementation of the new system.

Automated Safety Stock System Improves Efficiency