In an attempt to reduce its stockholding of slower moving lines and increase availability of fast moving lines, Osram has commissioned Ability Solutions to implement its Inventory Optimization solution within the company.
Grahame Boyle, sales and marketing director of Osram, says: "The Ability implementation will help us get the correct stock levels into the right sectors. We have high levels of stock in our slow-moving lines at the moment. We would rather use that investment in inventory to get the right products into the right places."
Stephan Smith, director of Ability - Inventory Optimization, says Osram is the market leader in the distribution of lamps and electrical ballasts worldwide.
All of Osram`s goods are imported and distributed to warehouses across South Africa. This means the company has to deal with issues related to poor supplier performance, long and erratic lead times and seasonal factors.
Graham Bell, senior financial controller at Osram, explains: "Part of our success is based on our ability to supply when other lamp suppliers in this country are often out of stock. There is no local manufacturer of lamps in South Africa, be these low-voltage, deco ceiling lamps, fluorescent tubes or energy-savers."
Smith says Osram`s requirement is for a solution that can handle demand planning and service level optimisation of inventory, as well as manage supplier performance.
Ability Solutions will implement service level modules, using neural network technology to manage customer service levels in the supply chain, from the supplier to the customer. It will also implement its inventory-modelling module, which will allow Osram to effectively employ scenario planning.
Adds Boyle: "It is very important for us to improve our overall service levels to our customers. Having a system like Ability - Inventory Optimization in place will remove the burden of having to manually monitor these systems all the time."
Osram will also have the ability to do automatic electronic procurement. Says Bell: "We are looking at the supply chain with all our sister companies. The e-commerce component will help us undertake forecasting with our factories all over the world. This will allow us to better forecast stock requirements and availability, and our factories will be able to plan their production schedules."
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Ability
Ability Solutions, a subsidiary company of JSE-listed Ixchange, is a leading provider of supply chain optimization solutions. We help companies accelerate their profitability by providing specialist solutions that address the dynamic needs of businesses in the New Economy. Ability`s flexible, scaleable and robust solutions address the complex problems distributors face as they seek to drive profitable growth. Ability`s solution set includes the Ability^O - eCommerce Fulfillment, Ability ^O - Inventory Optimization and Ability^O - Financial Management solutions.
Ability provides targeted solutions intended to guarantee its customers` ability to realize a rapid return on investment as a result of streamlining their supply chain process, improving their operational efficiencies, effectively managing their suppliers and increasing customer satisfaction. Ability has offices worldwide, with headquarters in Atlanta, GA., USA.
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