Project:

Role:

Client:

Segmentation of the SKU portfolio

Lead Consultant

MNC Oil & Gas

In addition to the project deliverables as defined by the client, the project also delivered:

  • Enrichment of the ABC-classification with a further segmentation of the demand by SKU/warehouse into smooth, erratic, intermittent or lumpy. This is a 2-by-2 box segmentation based on demand variability (in volume) and demand interval (demand variability in time)

  • Simulation and implementation of a fill-up model for B- and C-SKUs that have a lumpy or intermittent demand pattern

  • Design of an overall inventory policy, defining the roles and responsibilities (in a RAPID) for each of the drivers of inventory.

Inventory project, focussing on achieving sustainable inventory optimization by segmenting the SKU portfolio into:

  • Make to Order vs Make to Stock:

    • Developed a selection policy to identify when to apply MTO or MTS

    • Analysis of the full portfolio based on the selection policy

    • Communication package to implement the new order policy

  • For Make to Stock: A, B and C SKU classification:

    • Defined new selection criteria to define A, B or C based on contribution to margin

    • Redefined the impact/use of the SKU classification for the various supply and inventory planning processes

    • Amended the SKU classification policy in line with updated selection criteria and application

    • Analysis of the full portfolio based on the updated selection criteria to create an implementation plan