Project and Objectives
AmArA implemented ToolsGroup’s SO99+ solution for its MRO inventory. The company’s objectives were to:
- Improve the level of customer service;
- Reduce MRO inventory levels throughout the network;
- Optimize and improve the purchasing and replenishment process
- Optimize the logistical network;
- Increase flexibility in inventory management to adapt to a changing market;
- Reduce stock obsolescence.
SO99+ handles AmArA’s two-tier distribution network, which includes a central warehouse and 16 secondary storage sites. SO99+ manages AmArA’s 350,000 MRO inventory items with extremely varied and dynamic sales characteristics, a wide variety of markets, and restocking on a daily basis.
SO99+ maintains a very high customer service level, despite complex restocking requirements over three distribution networks. SO99+ also restocks between warehouses in order to avoid obsolescence of low turnover items.
Results & Benefits
SO99+ is now the system used to support and manage the diverse levels of company planning and parts purchasing.
- An improvement in the customer service level;
- A 38% working capital improvement; consisting of a 12% MRO inventory reduction in 6 months, combined with 22% sales increase;
- Optimization of the replenishment process, thereby increasing the productivity of the Purchasing Department (10 people) and the planner; “Cushion” for the change of ERP from TOP to SAP;
- Optimization of the two distribution networks.