Improvement – Material Planning Process


  • High level of Raw Material Inventory, resulting in higher interest cost

Recommended Solution

  • Study of Material Planning, Requisition & Procurement Process
  • Study of data related to Planning, Procurement, Consumption and Inventory level
  • Identified inconsistencies in consumption pattern vis-à-vis inventory levels & procurement pattern
  • Analyzed business reasons for inconsistencies


  • Recommended alignment of Inventory level & Procurement with Consumption pattern that would result in reduction in Inventory level by 30%
  • Recommended review of the policy on inventory levels, not reviewed for a long time, so that balance could be struck between seam-less operations and cost optimization
  • Recommended shift from manual process (outside of ERP) of planning to ERP/ Analytics based planning & decisionmaking