Warehouse Availability and Stock Reduction

The problem

In all warehouses poor availability is a major concern, as the impact is felt at every point in the supply chain, from distribution through to the retailers. Availability issues quickly impact profitability and can cause significant issues for businesses of all sizes. It is easy to believe that a large warehouse must have great availability levels, but this is not always the case.

The client we worked with was struggling to meet availability requirements, due to the pressure of holding large levels of undue stock at the expense of capital expenditure. As an ambient food warehouse based in the UK, the challenge to balance availability with year on year stock reduction targets is not uncommon.

Our solution

The warehouse held over 2000 product lines in stock, so we understood that our solution would need to take this vast inventory into account when planning availability and stock reduction methods.

The Cloudaeon team began by analysing and consolidating multimillion row data sets to gain an insight into the warehouse product flows. This meant we could create an insight tool to highlight the causes of poor availability and undue stock holding issues.

The insight tool was used to create actionable insights which the operations team could put into action. Once the tool was incorporated into the workflows, it became clear that there were significant improvements to the line availability and stock holding positions. The insight tool also took into account the capacity of the warehouse to meet demands in the future should the business grow and expand.

The result

It was clear that our system led to significant improvements in the warehouse with a 3.7% increase in individual line availability. Our system also took into account the future demands of the warehouse, by reducing stock holding by 15% year-on-year.