About this Presentation
To reduce inventory, it has been necessary to reduce the Order Lead Time, increasing the number of pickings in the warehouse. The undesirable effect is the delay on deliveries causing stock outs and increasing inventories on stores. This presentation will explain how to successfully reduce inventory maintaining the same number of pickings, avoiding picking to become the Constraint. Most of the companies have their logistic infrastructure based on their current distribution, or ERP system. Warehouse, trucks, routes and receiving docks at the store are balanced with the current parameters system. Implementing other systems like DBM to reduce inventory will probably reduce the Order Lead Time then increasing the number of pickings and all related work on the docks and stores. If the infrastructure in the warehouse is not dimensioned to a higher volume of pickings, then delays on the deliveries will occur causing stock outs on the stores, and DBM will increase the target level of inventory. To manage well, we must reduce inventory and avoid delays on deliveries to the stores. The conflict is: Reduce Order Lead Time or Maintain the Number of Pickings? The need to Reduce Order Lead Time is to reduce inventory; on the other hand, the need to Maintain the Number of Pickings is to Avoid Picking Becoming a Constraint. When the warehouse is the constraint, the adherence to the orders issued by the system is very low. The orders are not delivered according to the expected quantity, neither the expected date. It is necessary to monitor the adherence of the warehouse to the orders issued by the system. Most of the companies have excess inventory in some stores and shortage in others. When the Inventory Turns is very low, a long time will be needed to bring the inventory to the right level. To speed up in order to reach the right inventory level an algorithm was created to transfer inventory between stores. On the presentation we will show how to reduce inventory keeping the same number of pickings, increasing the adherence indicator, and the benefit to transfer inventory between stores Avoiding Picking to Become a Constraint.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
Nelgrid's purpose is to integrate different companies on the supply chain by aggregating inventory and sales information on the cloud and sharing this information with the manufacturer.
The company's algorithm reduces out of stocks, increases availability and sales, eliminates excess inventory, and frees up cash flow for clients.
The adherence KPI is a crucial metric for monitoring how well companies are following the orders issued.
Instructor(s)
Miguel Abuhab
Miguel Abuhab is a mechanical engineer, who graduated from ITA - Aeronautics Institute of Technology. In 1999, he founded NeoGrid, a provider of Supply Chain Management (SCM) software solutions, which has become a leading provider in Brazil, listed on the stock market in December 2020. Currently holds the position of Chairman of the Board.
Since 2003, Abuhab has worked on its Tax Simplification Plan for Brazil - Abuhab Model of VAT Collection - which served as the basis for the Tax Reform Report approved in December. In 2019, he presented his Plan to the CCJ - Constitution, and Justice Commission, which amends the National Tax System. About the subject, he wrote books that address tax reform to unlock Brazil and sustain growth and social inclusion.
Abuhab is an advocate of Eliyahu Goldratt’s ideas, incorporating in his business expertise the Theory of Constraints (TOC) and ideas related to the supply chain He also works strongly in social responsibility projects, focused on education. The TOCfE (TOC for Education) program, sponsored by the Miguel Abuhab Institute (IMA), has trained 200 volunteer teachers in 20 public and private schools in Joinville, serving more than 5,000 children.
Ms Alka Wadhwa
Alka Wadhwa is an experienced consultant and process improvement expert with over 24 years of expertise in the Theory of Constraints (TOC), Lean Six Sigma, and organizational performance optimization. She has successfully led projects in healthcare, financial services, and manufacturing, driving significant improvements such as a 67% boost in hospital operations and a 140% increase in outpatient visits.
Previously, Alka Wadhwa spent 17+ years at GE Global Research Center, where she led initiatives to enhance various GE businesses through advanced technologies, process redesign, and system optimization. Founder of Better Solutions Consulting, LLC, she specializes in using TOC, Six Sigma, and data analytics to streamline operations and build high-performance teams.
Her work has earned her multiple accolades, including the Empire State Award of Excellence in healthcare.
Dr Gary Wadhwa
Dr. Gary Wadhwa is a Board Certified Oral & Maxillofacial Surgeon with extensive experience in the field. He completed his Oral & Maxillofacial Surgery training at Montefiore Hospital, Albert Einstein College of Medicine in Bronx, NY, and has served as an Attending at prestigious institutions like St. Peters Hospitals, Ellis Hospital, and Beth Israel Hospital in NY. With a career spanning over two decades, he was the former CEO and President of a group specialty practice in NY from 1994 to 2015. Dr. Wadhwa holds an MBA from UT at Knoxville, TN, and has undergone additional training in System Dynamics at MIT, Health System Management at Harvard Business School, and Entrepreneurship and healthcare innovations at Columbia Business School. Committed to expanding access to Oral & Maxillofacial Surgery care, he is currently engaged in a meaningful project to provide healthcare services to underserved populations in inner city and rural areas through non-profit Community Health Centers.