Due to a significant boost in customer demand and the associated need to drastically increase production and stock levels within a very short time period, our customer slid into a severe inventory integrity crisis. Parts and components could not be found in the warehouse or got damaged due to painful storage space constraints. Trying to make up for the inefficiencies, our customer decided to hire dozens of inexperienced and unskilled warehouse workers - which was completely counterproductive and exacerbated the situation. If the inventory crisis could not be rapidly solved, the audit of the annual statement of accounts would be at high risk to fail.
The Final Impact
Inventory integrity re-established, audit of the annual statement of accounts passed
Logistics costs (3PL vs. internal warehouse) reduced by >20%