Supply Chain Management, Inventory and Capitalization Process Reduction, Inventory Valuation.
SPIRIT BEHAVIOURS
Get it Done Together, Create the Future.
We faced difficulties tracking and maintaining the inventory buckets after an increase in the in-transit inventory from warehouse to site. It caused unnecessary delays in asset capitalization and impacted inventory valuation for Local Markets. We resolved the issue by developing a central reporting mechanism, enabling us to track inventory, set KPIs for each local market, and highlight required actions.
Challenges and Solutions
Challenges
A significant increase in in-transit inventory from warehouse to site led to a delay in capitalization of assets, impacting the overall inventory valuation for Local Markets.
Solutions
The team developed a central reporting mechanism to track the key indicators for inventory buckets (e.g., Warehouse, In-Transit, and goods received at the site but not installed) and set KPIs for each local market with monthly reporting highlighting required actions.
Value and Impact
45%
Steep reduction of 45% worth.
€685
€685 Mn achieved in Warehouse.
€1515
In-Transit goods received at site but not installed inventory from €1515 Mn in Jul 22 to €830 Mn till Mar 23.
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