acme case study outcome

7/31/2019 Acme Case Study Outcome

1/7


2/7

Solution

Strategy

Set & communicate goals for entire company: Flat decided to focus majority of effort and

resources on flat product inventory managementGoal: Reduce $10-15 million in inventory

Assigned key Executive to flat inventory goal

Extrusion since the purchase order size is significant

to maintaining the margin, which is a critical companygoal and the inventory is highly specialized andreserved, it was decided to make this a 2nd priority toflat.Goal at a minimum, keep inventory levels flat

(reduce if possible)


3/7

Solution

People

Each branch assigned an Inventory Managerand/or resource to be responsible for inventorylevels and coordination Larger branches dedicated resources

Smaller branches resources not fully dedicated butinventory was considered a key priority

Reviewed the skillsets required for the role vs.potential candidates promoted from within toget the right people in the right roles

Developed a team set common goal, invested

in training, meetings etc.


4/7

Solution

Process (High Level)

Metrics developed inventory metrics (bybranch, by product line) and tracked daily =

management focusPay tied pay to performance/ metrics

(inventory became one of the key componentsfor bonus for ALL functions)

Focus the Executives emphasized theimportance of inventory and it became one ofthe key topics during branch meetings/conversations

Communication/ Priorities - Held monthlymeetings with all Inventory Managers, Branch


5/7

Solution

Process (Inventory Planning)The Inventory Executive, Inventory Manager/

resource, Branch Manager and other key partiesmet to review specific contracts, inventory, etc

developed plans to address for each specificbranch/ contract

Identified and cleaned up data integrity issues

Developed overstock lists and worked with Sales

to sell off inventoryDeveloped process to check rems to make sure

to utilize available inventory prior to placing anew PO

Completed a review of reserved inventory for


6/7

Solution

Process (Inventory Planning)Developed process to share inventory among

branches and encourage transfers when best fortotal company bottom line (Inventory Managers

met to review common items once a quarter atminimum in person and weekly by conferencecalls)

Provided inventory planning training

Worked with mills / customers to increase theuse of material via spec combinations etc (canuse same item to fill more customer orders)


7/7

Solution

Process (Inventory Planning)Reviewed incoming POs for opportunities to

push out or cancel if possible

Developed a rough S&OP (sales and operationsplanning) analysis and meeting process evolved over time with improved people,process, and tools

Technology/ Tools

Leveraged the Excel tool (poor mans MRP)Updated based on Inventory Manager input

Provided training

Utilized for S&OP process

Developed Additional reports to manage

acme case study outcome

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