Stocks review & optimisation

Our client is a public sector company responsible for the production, transmission and distribution of electricity for the province of Quebec. The company operates dozens of power plants across the province and also manages a complex network of transmission lines. In addition, the company is also responsible for processing and distribution to industrial and residential users. As a result, it has to manage thousands of different products to ensure the continuity of its service.

In order to rationalize its material management operations for its three main divisions (production, transport and distribution), the company wishes to consolidate common material, centralize its purchasing and replenishment operations and optimize its network of distribution in order to offer an optimal level of service to its internal customers. The pooling of this equipment will cover maintenance products, spare parts for vehicles, tools, accessories, and transformers, street posts and other categories.

Reorganization of the distribution network (4 months):

• Evaluate in detail the current distribution network, stocks, rotation, specifications, suppliers, transportation and infrastructure;
• Simulate consolidation projects and potential reduction of stocks level;
• Recommend consolidating from 7 sites è 4 sites to possibly 2 main material storage sites;
• Support our client in consolidating these sites;

Rationalization of equipment (6 months):

• Carry out an inventory diagnostic of all the material covered by the material management department and conduct a consumption analysis;
• Review the relevance of rationalizing (reducing) the number of products in the catalogue with similar specifications;
• Review the stock management parameters (lead time, minimum stock, critical, etc.) in SAP and adjust the parameters;
• Carry out a detailed diagnosis of inventories and corrective actions (return to suppliers, scrap, reconditioning, recycling, etc.);
• Review the identification of products and their storage characteristics (re: yards with posts and transformers);
• Develop a project, relocation and operations transition plan;

Start of MM, SD and WM module in SAP (6 months):

• Training of users in the best practices of the industry;
• Develop the configuration of products and management rules;
• Set up real-time information capture interfaces (RF);
• Management and corrective actions;

• The establishment of a new materiel management network;
• Involvement of the material catalogue and better control of consumption;
• Elimination and rationalization of equipment and reduction of stocks by 20%;
• Establishment of a one-stop shop and performance report;