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Case Studies
Bridisco Print E-mail

Bridisco needed to reduce the value of inventory to generate cash whilst improving service to customerActive Images.

 After an initial assessment we identified that replenishment cycles both inbound to central warehouse and outbound to hub warehouses could be reduced. The changes were implemented and over 6 weeks stock value reduced by £4 million. As a consequence of reducing RCs outbound the service level improved across the network because each delivery contained a wider number of SKUs.
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Buck & Hickman: Distribution Cost Reduction Print E-mail

Industrial distribution company needed to significantly reduce operating costs and improve customer service. We engaged in an extensive feasibility study using network and inventory modelling software to identify the optimum network and stocking solution to meet their objectives.

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Stock Reduction Print E-mail
Following its migration to the parent company’s operating system, the client found that its inventory increased by over £2 million (25%) in 6 months. It urgently needed to gain control over its purchasing and inventory activity, which was dispersed across 31 locations, and reverse the trend in inventory growth.

After analysing the inventory profile and purchasing trends on a warehouse-by-warehouse basis our consultants identified the opportunities for inventory reduction. We used a number of different tactics to establish control over the situation and deliver the clients objectives

  • Inventory Optimisation software was used to determine line item order policy.
  • Targets were established and we performance managed each branch to achieve them.
  • Excess and obsolete stock was identified and disposed of using an number of channels including our web based auction channel.
  • VMI solutions were reviewed and negotiations for removal of non-moving stock were undertaken with suppliers and customers.
We successfully delivered a reduction of £3 million in inventory while improving customer service
 
Aerospace Materials Planning Print E-mail
Active Image

A specialist aerospace materials distribution business with 3 UK locations and 5 International sites faced significant service challenges. This was due to lead times of up to 72 weeks for raw materials but customer delivery lead times of less than 2 weeks. Customer service was poor despite high levels of inventory. The purchasing team used spreadsheets to determine demand and plan forward purchases as they had no effective planning functionality in their SAP system.

Red Kite helped the senior team to define its vision for planning excellence and determine new processes, organisational structure and IT to support the vision.

Over 18 months we implemented a programme of major change including the implementation of Optimiza Inventory software. A central demand and inventory management team was established and trained in new processes and tools and began to deliver improved stock availability and customer service across the network.

The business derived significant financial benefits including:

  • 25% (£8million) reduction in inventory
  • 75% reduction in stocked lines
  • 30% improvement in stock availability to 94%

Most importantly the client has established itself as the market leader in the provision of supply chain management services to the aerospace industry.

 
Distribution Network Solutions Print E-mail

Image Distribution is a fast changing industry responding to changing customer needs and new sources of supply. Many networks developed through sporadic growth or branch acquisitions which no longer support the target customer base or deliver a cost effective service.

Red Kite has the experience and technology to enable clients to model their existing network and options for change. We will identify opportunities for relocation, consolidation and establishment of new sites, delivering an overall improvement in service at lower cost.

Whilst we will use proven software modelling techniques such as CAST or Paragon we do detailed field based assessments which take into account drop times, bespoke service solutions and local knowledge. This is critical in generating practical solutions bought into by those who have to deliver.

Red Kite has already implemented solutions for multi-location branch and distribution businesses making significant savings for our clients. If your network needs a helping hand to achieve a profitable distribution network, call us for a free consultation.

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