SITUATION

A multinational energy provider had identified a potential savings opportunity. It was thought that through improvements to the organization’s inventory management practices significant financial benefits could be realized.

There was a belief within the business that inventory levels were not adequately documented let alone managed. An internal transformation team had been established to look at projects of this nature. However, with limited internal experience in inventory management, the organization looked to OnDemand Resources for help.

SOLUTION

The client enlisted the assistance of OnDemand Partner Paul, a resource with significant experience in delivering positive outcomes in the field of inventory management to lead this critical project.  Paul was tasked with:

• Providing the organization with an understanding of its current inventory
• Assessing the level of inventory required for optimal business
• Identifying surplus equipment and inventory that organization could sell
• Developing and documenting a strategic inventory management process that would allow the organization to continue to successfully manage its inventory levels into the future

Paul developed a governance and a communications plan to constantly inform both the key stakeholders and the senior management team of the activities and success of the inventory project team.

RESULTS

Paul led his team through a difficult data validation phase that resulted in the company getting visibility of its inventory levels for the first time.

Paul undertook numerous site visits to identify and document the location, condition and value of the organizations surplus equipment and advised the senior management team on the items that could potentially be sold through 3rd party brokers.

Paul and the project team identified over $100M worth of savings. All project activities have been thoroughly documented and developed into an inventory management plan that will ensure the organization’s continued success in this area.