Case Study: Lean Inventory Control Improvement

By Juan Liu

Case Description: An after-sales service organization battled with reducing inventory levels after turning up purchases to avoid constant stock-out situations.

Our Role: We have employed lean techniques to identify the drivers of fluctuating stock trends and set different stock-reduction strategies per type of stock. This project introduced much-needed visibility and transparency into the working capital cycle, based on which “wastes” were differentiated from the “critical stocks” and reduced, while “fast delivery” service was kept intact as much as possible in this change process.

Results:  10% reduction in the inventory level, with much higher visibility and controls on the stock-keeping process.