Inventory Revolution

Materials and Spare Parts Inventory Management & Optimization

Since 2001 Phillip has advised:

• 315 companies

• with +1,000 storerooms

• holding $3.6bn of inventory

 USA and Canada Call 800-581-7678

Australia and Other Countries Call +61 3 9331 3181

The right balance between inventory investment and meeting operational needs can only be achieved through true inventory optimization. This requires knowledge of inventory management, parts usage, procurement, supply chain, and an understanding of the behaviours and management processes that drive them. We call this Inventory Process Optimization™ (IPO). 

The different emphasis of IPO achieves significantly better results than just software programs as it identifies opportunities that ‘traditional algorithm-based optimization’ does not and, in fact, cannot identify.  In addition, because the resulting actions are process based, the results from these opportunities can be maintained for many years, they are not short term ‘slash and burn’ outcomes.  

How much better? Typically, companies that apply a traditional approach will achieve about a 10% reduction, while companies that have applied the IPOM often achieve more than 30% (without increasing their operational risk). How much would this extra saving be worth for your company?

Stream 1: Individual Parts Review

The Individual Parts Review utilizes our Inventory Cash Release^® (ICR^®) Process and comprises three key elements:

1. Focus on the high dollar value items

2. Utilize ‘7 Actions’ for Inventory Reduction 

3. Involve a wide team and build their skills

This approach is fully transparent so that you will know who made which decisions and why. It is because the logic of software algorithms is not transparent that most users don’t trust the outcomes and ultimately override the recommendations. With our approach this does not happen. 

Stream 2: Management Process Review 

The Management Process Review addresses the management processes that have an ongoing impact on your materials and spares inventory management results.  The steps are:

1. Appraisal of your current inventory management practices.

2. Identification and agreement with the team on the issues and behaviours that have a negative impact on inventory levels.

3. Identification and agreement with the team on the actions required for achieving lasting results.

The output of the Management Process Review is an agreed action plan and timetable to address issues and behaviors.

Smart Inventory Solutions

Improving the Management of Engineering Materials and Spare Parts

A New Strategy for Continuous Improvement

10 Steps to Lower Costs & Operational Excellence

The Optimization Trap

Avoiding the Pitfalls that Limit Operational Performance

ICR Software

A specialized tool that will help you to get more from your inventory reduction program.