The Company was Able to Fully Optimize Their Procurement of Hardware Inventory

Business Challenge

An aircraft component manufacturer was experiencing difficulty with managing their hardware inventory.

Forecasting, inventory carrying costs, storage, and tracking of critical parts were not meeting industry benchmarks. The customer felt their approach was hindering the company’s competitive advantage.

The customer came to Incora™ searching to reduce cost of inventory, free up cash flow, and consolidate their supplier base.

Overall, they needed to improve their inventory management performance.

Incora Solution

Incora implemented a Vendor Managed Inventory (VMI) program to ensure a smooth flow of materials to the shop at the right quantities, minimising the customer’s storage footprint and reducing stock-outs.

This was achieved through the use of proprietary smartphone scanners, inventory planning tools, and software solutions. With this infrastructure, Incora was able to:

Collect usage data at the point-of-use
Track consumption
Manage expirations
Automatically initiate replenishment

Results

Incora’s services consolidated the customer’s spend, provided one monthly invoice that spanned a wide range of product suppliers, and significantly reduced capital carrying costs at each manufacturing site.

The automatic invoicing and tailored reporting monitored operations which increased stock turnover.

Incora’s integrated solution provided other notable cost savings and efficiencies for the customer:

44% reduction in inventory carrying costs
Improved stock turn
No shortages or lines down
95% OTD from suppliers (compared to 70% rating)
99.9% OTD to point-of-use (compared to 75% rating)
54% reduction in required staffing, enabling redirection of resources to higher-value activities
Improved quality and reduced obsolete and damaged inventory
Increased floor space