Avoid unproductive lashes

Strong fluctuations in demand had an almost immediate impact on Orthomol’s production. The picture shows the development of production and sales at the micronutrient manufacturer over the last few years. By balancing the stocks in the finished goods warehouse and thus optimizing inventory management, management consultants Abels & Kemmner were able to reduce this whip effect. The ABC-XYZ analysis of the range of articles revealed the potential: By increasing the ranges for fast-moving items with relatively regular consumption patterns while at the same time realizing reduction potential in other item classes, it was possible to achieve this without major inventory changes in the production planning process.

Today, the manufacturer, whose products are used as part of a nutritional medical treatment to contribute to the success of a medical Figure 2therapy and to delay the progression of diseases. It is also possible to fix a production program for one week, which has led to improvements in the areas of production and packaging. Previously, production planning was changed several times a day in some cases. Today, approx. 80% of all production and assembly capacities are utilized and approx. 20% left open for exotic and unexpected requirements. If these extraordinary requirements do not occur, the capacity is filled with “normal” orders. The market continues to be served without higher stocks of finished goods. As a delivery service, Orthomol guarantees its customers that orders received by 1 p.m. will be dispatched the same day at 5 p.m., while orders received later will be dispatched the following day.

Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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