AV-22 Benefits of Data Cleansing and Inventory Optimization
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1 Slide 1
2 AV-22 Benefits of Data Cleansing and Inventory / #SoftwareRevolution /MRO-Inventory-Management-Analysis /Inventory-Management-Analysis-Ltd social.invensys.com /IMALtd Invensys. All Rights Reserved. The names, logos, and taglines identifying the products and services of Invensys are proprietary marks of Invensys or its subsidiaries. All third party trademarks and service marks are the proprietary marks of their respective owners.
3 Who Is IMA? Empowering data-driven savings for over twenty years Long-time Invensys partner providing value-added services to Avantis clients Data Cleansing Catalogue Management Inventory Optimization Over 20 Million SKUs cleansed Clients include many global Fortune 100 and 500 companies Slide 3
4 Global Presence ISO 8000 MDQM certified Internal resources fluent in English, French, German, Spanish, Flemish, Dutch and Italian Translation alliances to support all other languages, allowing IMA to serve clients globally IMA Clients Slide 4
5 Industry Segmentation Pulp and Paper Chemicals and Allied Products Automotive Slide 5 Food and Beverage Metal Manufacturing Oil, Gas and Mining Other Industries Utilities Lumber and Wood Products
6 Solutions Pre-Cleanse umanage Item Slide 6 umanage Vendor Data Cleansing umanage Pro Web Based Services uview uoptimize
7 Data Cleansing Slide 7
8 The Challenge Ball Bearing, SKF 62052rs, 25x52x15 BRG, Ball, Radial rS, 10mm ID 60122rs SKF - Bearing Ball, Bearing, rs, SKF, SGL Row Ball Brg, 2rs, 50mm id, 90mm od, 20mm wd Ball BRG 60132RS Slide 8
9 Pre-Cleanse Ball Bearing, SKF 62052rs, 25x52x15 B80 Gates, V Belt, B section Baldor Motor, electric, 3/4 HP, VM3542 B53004L, Solenoid valve, 5 port, Parker Hannifin MFG NAME Slide 9 MFG P/N NOUN MODIFIER
10 Pre-Cleanse Pre-Cleanse Report Total Number of SKUs Overall Data Score 104, % Nouns 99, % Part Numbers 91, % Manufacturers 63, % Review Items 5, % Duplicates 11, % Library Hits 17, % Lookups 74, % Description Quality Avg. Number of Words 8 Average 49 Minimum 0 Maximum 240 Product Group Segmentation Bearings 4, % Electrical 12, % Hydraulic % Industrial Supply 64, % Material Handling % Pneumatic 8, % PT 7, % Insufficient Information 5, % Slide 10
11 Process Step #1 - Assignment of Personnel and Documentation Step #2 - Establish Data Formatting Standards - Standard Operating Procedure - Naming Convention (Noun, Modifier, Attributes) - Abbreviations Step #3 - Receipt of Item Master Data File Step #4 - Data Cleansing Process Step #5 - Test Data and File Format Step #6 - Second Data Extract (Add-Ons) Step #7 - Return Initial File Internal Cleansed Data Step #8 - Review Items Step #9 - Duplicate Items Step #10 - Final Quality Control Review Step #11 - Return Final File All Cleansed Data Step #12 - Catalogue Management Slide 11
12 Internal Tools Systems Independent Internally developed software Ability to accommodate unique client requirements IMA Master Library Currently houses over 20,000,000 records directly from manufacturer and OEM catalogues IMA Noun/Modifier Dictionary Contains over 2,000 Noun/Modifier pairs, each with 5 to 7 standard attributes Configurable to client requirements Intra & Internet Tools Multiple tools for accurate and efficient part look-ups UNSPSC coding tool with access to multiple versions Slide 12
13 Pre-Cleanse Tool MFG: Noun/Modifier Dictionary P/N: SKF RS/C3 Online Research Assistant IMA Master Parts Library NOUN: BEARING MODIFIER: BALL INSIDE DIA. 25 MM ID OUTSIDE DIA. 52 MM ID WIDTH 15 MM WD TYPE CONRAD ROW SINGLE ROW SERIES LIGHT DUTY STYLE 2 SEALS CLEARANCE CAGE MATERIAL STEEL RAW CLIENT DATA: C3 CLEARANCE SKF Ball Brg, 62052RS-C3, 15mm WD CLEANSE: BEARING, BALL, SKF, RS/C3 STANDARDIZE: BEARING, BALL, 15 MM WD, SKF, RS/C3 ENHANCE: BEARING, BALL, 25 MM ID, 52 MM OD, 15 MM WD, CONRAD, SINGLE ROW, LIGHT DUTY, 2 SEALS, C3 CLEARANCE, STEEL, SKF, RS/C3 Slide 13
14 Results Slide 14
15 Results Slide 15
16 Results Slide 16
17 RESULTS Manufacturer Name Standardization Slide 17
18 Product Group Consistency Product Group Consistency Slide 18
19 Benefits Inventory Procurement Inventory Reduction Disposition of unnecessary inventory Excess-Active Duplicate Slow-Moving Obsolete Elimination of false stock-outs Spend Leverage Vendor Consolidation Establish preferred supplier programs Product Group Consolidation Elimination of maverick purchases Effective management reporting Maintenance Enterprise Application Ability to locate the right part, at the right time, and in the right quantity Efficient maintenance requests - Time savings Downtime reduction Accurate replenishment Set proper min/max levels, order points, and quantities Slide 19 Accurate data mapping Improved overall functionality and Return On Investment Efficient search ability Detailed reporting Supplier spend, Commodity Segmentation, Usage, etc.
20 Web-Base Services umanage Slide 20
21 Data Governance Ball Bearing, SKF 62052rs, 25x52x15 Requester 1 BRG, Ball, Radial rS, 10mm ID IMA Cataloguer Data Governance Manager (Approver) Requester rs SKF Bearing Requester 3 Slide 21
22 Catalogue Management Tillsonburg SKF RS bob.smith 25 MM ID 52 MM OD 15 MM WD ******** Slide 22
23 Benefits Long-term data quality Restricted user access Prevention of duplication Reduced administrative effort Increased return on enterprise application investment Slide 23
24 Inventory Optimization uoptimize Slide 24
25 Inventory Optimization uoptimize Detailed analysis of all MRO commodities and categories, including spend by supplier and recommended stocking levels. OEM 40% MRO Inventory is Segmented into Categories MRO 60% Ind. Supplies Instrumentation 14% 12% P.V.F. 12% Fluid Power 15% Bearings 21% Electrical 26% Required Active 27% Excess Active 20% Client Data Required On-hand stores inventory & usage 12/24 month vendor purchase history Slide 25 Inactive 53% Critical Spares 15% Obsolete 16% Slow-Moving Stock 22%
26 Inventory Optimization uoptimize Items categorized by commodity Bearing & PT, Electrical, Industrial Supply, etc. Annual spend captured by commodity Inventory segregated by activity Active Bearing & PT Excess Inactive Vendor market share by commodity Number of vendors per commodity Instrumentation Annual dollars spent per commodity Itemized listing of all Direct/Spot Buy purchases Number of times purchased and quantity Vendor name Price variance IMA recommended Min/Max stocking levels Based on A, B, C formula Combination of client usage, issues and purchase history Slide 26 Electrical P.V.F. Fluid Power Industrial Supplies Mobil
27 Benefits Preferred supplier programs Competitive MRO item pricing Excess inventory reduction Accurate reporting Spend by commodity Spend by supplier Usage/Activity Set proper min/max levels Slide 27
28 Cost Savings Opportunities Slide 28
29 Cost Savings Opportunities Identification of MRO Duplication (Average 10-20%) OEM to MRO Conversion (Average 5-15%) Figures based on annual spend of $50,000,000 (60% MRO 40% OEM) and an MRO Inventory Value of $25,000,000. IMA uses the most conservative values when providing potential cost savings samples. Slide 29
30 Cost Savings Opportunities Spend Leverage (Average 10-20%) Spot Buys (Average 10-20%) Figures based on annual spend of $50,000,000 (60% MRO 40% OEM) and an MRO Inventory Value of $25,000,000. IMA uses the most conservative values when providing potential cost savings samples. Slide 30
31 Cost Savings Opportunities Excess-Active MRO Overstock (Average 10-20%) Total Cost Savings Summary Figures based on annual spend of $50,000,000 (60% MRO 40% OEM) and an MRO Inventory Value of $25,000,000. IMA uses the most conservative values when providing potential cost savings samples. Slide 31
32 Thank You Troy D. Miller 500 Hwy #3, P.O. Box 96 Tillsonburg, ON Canada N4G 4H3 Vice President Rob Hoffer Account Manager Tel: Fax: Jocelyn Facciotti Marketing Manager Like. Slide 32 Read. Follow. Connect. Watch.
33 Slide 33
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