After dealing with years of stubbornly low-turning inventory across its five businesses (2.0–3.5 turns), the leadership team reached out to Synergetics to help identify ways to free-up £0.4B of working capital from roughly £1.4B of in-scope inventory.
Synergetics’ initial engagement was focused on the supply chains within three divisions of this industry leader in the aerospace sector.
Our supply chain experts structured a 4-step diagnostic:
- Supply Chain Performance Benchmarking
- Supply Chain Management Process Mapping
- Data Modelling/Quick Wins/Process Workshops
- Implementation Planning
Seven key areas were targeted to drive inventory reduction actions applied across three stages:
- Short-term operational actions – primarily driven by spares and unprocessed materials burn through the reduction / push-out of purchase orders
- Medium-term operational actions – driven by a combination of vintage parts and legacy engine programs, enhanced spare parts forecasting and SORB (Sales and Operations Review Board) process, MRP planning, and data cleansing
- Medium-term strategic actions – primarily driven by VMI (Vendor Managed Inventory)/Consignment stock