Problem

Mantrac Unatrac group had a problem with their inventory control across North, East and West Africa. The company was struggling to maintain healthy stock levels, which led to an excess of dead stock. This resulted in a loss of revenue and wasted resources.

The company needed a solution that would help them manage their inventory more efficiently and reduce the amount of dead stock they had.

Click here for more information on how we solved this problem.

Solution

We implemented a multi-phase approach to solve Mantrac Unatrac's inventory control problem:

Phase One: We mapped out a new process for orders management to ensure that all ordered stock was justified.
Phase Two: We segmented the current dead stock based on engine series, compiled an engines population list for each country, and matched the current dead stock to engine series. This allowed us to highlight inventory distribution channels in each specific country. The sales team then approached customers offering discounted overhauls to sell the dead stock we had. This helped reduce the dead stock by about 30%.
Phase Three: We moved the remaining dead stock cross countries based on each country's engine population list. Rather than ordering directly from the manufacturer, we shipped from one country to another and then approached customers through overhauling, service, and discounted prices. This helped reduce the dead stock by another 12%.
Phase Four: We implemented an obsolescence program where selected spare parts were returned to the factory as they could be reprocessed and sold again. All remaining deadstock lists of spare parts were analyzed and matched with the manufacturer program. We filed for the spare parts that would be shipped from each country and received approval and credit notes. This helped reduce the dead stock by another 18%.
Phase Five: We auctioned off remaining dead stock to competitors who were interested in buying our stock at cost. This helped reduce the dead stock by another 8%.
Phase Six: We sold the final remaining dead stock as scrap to cover as much cost as possible.

Impact

Reduced dead stock by approximately 68%
Increase in revenue due to efficient inventory control

"This project had an incredible impact on Mantrac Unatrac's inventory control problem, resulting in a significant reduction in dead stock and an increase in revenue."

Team

Team Member #1 - Regional Inventory Control Supervisor
- Mapped out new process for orders management
- Analyzed remaining deadstock lists of spare parts and filed for return approval
Team Member #2 - Sales Team
- Sold discounted overhauls to customers to reduce dead stock
- Sold remaining deadstock through overhauling, service, discounted prices, auctions, and scrap sales

Mantrac Unatrac Reduces Dead Stock by 68%