Case Study 6:
Project Overview
Project: Establishing a Standard Process for Managing Spares Inventory
Client Profile: The client is a leading bakery company in the Middle East, operating across seven countries with 10 plants and 25 depots, handling inventory in multiple locations across Saudi Arabia.
Challenges
- Lack of timely material issuance and receiving processes, resulting in inaccurate inventory records.
- Absence of seriousness in inventory management, with stakeholders following their own processes.
- Missing timely reconciliation of inventory.
- No standard process or SOP for inventory management.
Solutions Provided
- Accurate Consumption Booking: Ensured all previous period consumption was booked in the system until September 2023. Verified live consumption booking before starting the physical verification in October 2023 to ensure accurate variances.
- Self-Declaration Verification: Conducted self-declaration verifications for three consecutive months, sharing a comparative variance report to provide a clear picture of inventory movement.
- SOP Development: Drafted a Standard Operating Procedure (SOP) based on industry benchmarks and tailored to the client’s existing processes.
- Monthly Reporting: Provided a monthly report to plant managers, indicating consumption booking trends and their impact.
Partnership with BSS – Key Benefits
BSS collaborated closely with the client to implement a comprehensive solution for spares inventory management. Key steps included:
- Real-time recording of daily transactions.
- Month-wise consumption analysis for each plant.
- Conducting a physical verification across all plants and delivering a detailed audit report with variance and solutions.
- Drafting an SOP aligned with industry benchmarks.
Outcome
Through these solutions, BSS ensured enhanced accuracy, improved inventory management, and better control of spares inventory across the organization.