We at Barloworld Optimus know that software solutions alone might only combat half of the problem. When Jewson, the UK’s leading supplier of timber and building products to the trade and general public, approached us to improve inventory management, we saw beyond software installation.
It’s true that a major part of the project involved the installation of the Optimiza inventory management tool to model different stock scenarios in Jewson’s consolidation centres. But we also recommended changes to certain supply chain procedures and processes, recommending a national consolidation approach whereby all branch sales are aggregated and orders are then placed based on the forecasts, including promotional activity, made at this level. Inventory control was further maximised by automating the management of product supersessions. One year on, Jewson has seen availability of certain lines increase from just 63% in 2005 to over 97% and maintains a service level to stores consistently above 90%.