Ordering with a system

Inventory turnover doubled through systematic inventory management

As part of a reorganization programme by Abels & Kemmner, the kitchen fittings wholesaler Rudolph was able to increase its average delivery readiness level to 93.8%. The introduction of a scheduling optimization system made a significant contribution to this improvement.

The range of articles at Alfred Rudolph GmbH & Co. KG, Halver, amounts to approx. 15,000 items. Only 7,000 of these are articles that have moved in the last twelve months. Around 5,000 items are always in stock. Around 2,000 orders with 4,500 items have to be processed every day. A new merchandise management system (Famac/AC-Service) was introduced in June 1998. Despite this, at the end of 1998, delivery readiness fell below 80 percent.

The causes of this dilemma were quickly clarified by means of systematic analyses: On the one hand, the stock range only partially corresponded to market requirements, and on the other hand, the set disposition procedures and parameters had only been determined across the board and “by instinct”. There was a complete lack of assistance in optimizing the processes and parameters as well as options for determining trend and seasonal factors. This is where the strengths of the Diskover optimization system became apparent. In 1999, due to a planned version change of the merchandise management system (MMS), the parameterization of the necessary scheduling parameters was first calculated externally by the consultants Abels & Kemmner and then transferred to the MMS system. Diskover 4.0 has been in operation since January 2000 and, as the Famac front end, handles the entire scheduling process.

The MRP controllers use the MRP controller indicator to select the relevant articles and a supplier indicator to select specific suppliers to be processed on the current day. An event list can be used to display all items for which Diskover has determined an order proposal. Particularly critical cases can also be selected initially, e.g. items for which the safety stock will not be reached during the replenishment period or for which shortages are likely to occur.

The current demand forecast and the order situation can then be viewed for each selected article. The additional calculation of seasonal and trend factors or the consideration of special promotions is also possible. On the basis of a dynamic, range-oriented order quantity calculation, Diskover then determines the necessary order processes on a daily basis. The orders determined in Diskover are stored in Famac and managed for further processing.

The inventory range as a ratio of inventory to consumption has now halved from 1.93 to 1.07 months. In principle, this corresponds to a doubling of the turnover.

Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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