Heavy Manufacturing Industry Boosts Inventory Accuracy by 98%

Key Information about the client

Origin: 150 year old organization with roots in Denmark, clocking turnover of 1000+ Cr in India

Scale: Manufacturing plant: Owned:2, Outsourced: 3, Warehouses: 4, No. of Orders : 2000+, Inventory value: 100cr+ in Mother warehouse. 1400+ SKUs

Current Setup: BOM (Bill of material) was defined for the machineries, Project based setup, Technology deployed: ERP.

Organization is building huge machineries for sectors like cement, mining etc where they take project based orders, procure the material, do the manufacturing, conduct necessary quality checks and then deliver the goods

The current process is totally manually driven. Once the PO is generated then Inbound starting from QC to GRN to Putaway is totally manual leading to high putaway lead times and low picking efficiency and inventory shrinkage

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There was almost a 6-8% difference in inventory found and accounted for due to manual processes and lack of adherence to defined SOPs

Due to changing business requirements they were procuring new SKUs but due to current prevalent inefficiencies accommodating new SKUs demanded stretched warehouse utilization or new space

The IPP (Items per person) of the warehouse was quite low as the pickpaths were not properly defined and the inventory was kept in random bins as there was no system to direct/monitor the labor to the defined bins for a particular SKUs

Omneelab after deep diving into their challenges formed a team composed of an SME (SubjectMatter Expert), Solutions Architect, Pre Sales Manager led by an Account Manager.
The team configured different flows to incorporate their requirements and delivered an end to end solution to solve their inventory silos.
Omneelab went an extra mile to provide extended training to their employees to help them accommodate the change in an efficient and effective manner.

Phase 1 – MSA Signoff

Phase 2 – FRD Creation and Signoff

Phase 3 – System Configurations & UAT Testing

Phase 4 – Onboarding & Training

Phase 4 – Go Live

Inventory Accuracy Increase from 92% to 98% within a span of 6 months
Warehouse Capacity utilization saw a rise of around 10% shifting the warehouse usage from stretched to standard
Inventory Holding cost reduced significantly with better space utilization and better labor productivity

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