Background on a current project
The Healthcare Global Customer Service parts businesses currently uses two main software vendors plus a Microsoft Access database to calculate stock levels at 195 worldwide locations, for more than 150,000 stock keeping units. The inventory goal is a 95% Fill Rate (FR) for parts overall and a 98% Fill Rate for Customer Critical Parts (CCP). The current solutions are not meeting the inventory requirements, producing too high stock levels. The business needs statistical multi-level multi-location optimization capability, which is not available in the current solutions.
Additionally, the HC parts businesses have additional requirements for which the current software solutions have no capability. Example: HC GCS needs software to analyze its contract customers and recommend locations for new stocking locations to meet the contract requirements (parts must be at the customers within XX hours).
As part of the RFI process for the tool we processed actual data to measure inventory reduction potential of 18% to 37% percent (proof of concept exercise). Along with these potentials, the following potential benefits have been evaluated and are incorporated into the business case:
· Inventory reduction through better forecasting, inventory optimization and vendor performance/ lead times;
· Reduced expediting costs (less emergency shipments).
In addition to the quantifiable benefits, the selected planning solution is also expected to deliver qualitative benefits, such as:
· Improved customer satisfaction and contract renewal rates;
· Reduced second trips for FSE’s due to improved part availability;
· Better end-to-end visibility and management control options for consistent realization of business objectives;
· Strategic enabler for competitive differentiators or growth opportunities.
