Returns-Based Inventory Growth Control
ScottMadden has worked with a number of organizations to develop supply chain analytics and data science solutions. Contact us to learn how we can help support your digital solutions projects.
At A Glance
Comprehensive Analysis
Identified sources of inventory growth by performing data analysis across work order and inventory transaction data over multiple years and millions of records
Data Visualization
Developed a data visualization solution to monitoring ongoing sources of growth
Inventory Savings
Achieved potential reduction of $10–$20 million a year in unnecessary inventory build-up by enabling a moderate reduction in reordering activity
Challenge
A vertically integrated, investor-owned utility was experiencing substantial long-term growth in its inventory levels. ScottMadden was engaged to assist in identifying the root causes of the growth and recommend solutions to control future growth.
Process
- Performed a comprehensive data analysis across work order and inventory transaction data over multiple years and millions of records to identify the sources of growth
- Identified work order process, including material reservation and cancellation practices, as a critical source of inventory growth with an initial focus on the nuclear generation fleet
- Developed statistical models to assign probabilities of work-order cancellation and eventual returns to inventory to inform spare part reordering activity
- Developed a data visualization solution to assist management in monitoring ongoing sources of inventory growth
Result
- Potential reduction of $10–$20 million a year in unnecessary inventory build-up by enabling a moderate reduction in reordering activity
Related Insights
Inventory Growth Control
Case Study
A vertically integrated, investor-owned utility was experiencing substantial long-term growth in its inventory levels. ScottMadden was engaged to assist in identifying the root causes of the growth and…
Critical Spare Part Classification
Case Study
A publicly traded fuel-processing entity was seeking an objective methodology to identify items within their inventory that are critical to uninterrupted operations.
Let’s Work Together
We don’t solve problems with canned methodologies. We help you solve the right problem in the right way. Our experience ensures that the solution works for you.