Is poor inventory management costing you?
Recently, an industry-leading global manufacturing company specializing in packaging materials realized that they had a number of significant problems on their hands. First, they had no accurate inventory of their packaging materials — troubling, to say the least. They had recently discovered that packaging materials were being stolen and sold for scrap, an issue that they needed to get a handle on sooner rather than later. Additional costs were being incurred to purchase damaged and lost packaging materials and to expedite transportation of packaging materials between plants to meet production schedules — issues that they needed to totally eliminate.
Finally, they had five different systems that were being utilized to track their packaging materials, none of which were integrated together. This led to the client having inaccurate data in all of their systems.
Improve processes to accurately manage goods
The team at Pariveda was able to perform an assessment of current requirements, IT systems, processes and controls on behalf of the client. Pariveda performed expansive interviews with business and IT executives to better determine their needs and to better understand the current working environment.
Day-long workshops were also held with plant personnel to get their feedback and recommendations about how packaging materials were being handled. At the end of all of this, we were able to recommend standards, processes and controls to virtually eliminate waste and theft and lower transportation costs at the exact same time. Pariveda also recommended system changes and integration to provide a more accurate inventory of packaging materials across the board.
Millions of dollars saved through process improvements
The client was able to save several million dollars per year in reduced transportation and packaging replacement costs alone. Pariveda also improved safety when handling packaging materials by way of advanced new procedures and provided better visibility and forecasting of materials, which reduced production line shutdowns due to lack of available resources.