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Optimization of stock management is the most powerful resource for efficiency increase of all aspects of commercial and industrial activity of the Company.

There are just several well-known and undoubted expert assessments:

  • Studies conducted in the UK have shown that up to 70% of product cost, received by consumer, comes from expenses related to storing, transportation, packing and other operations providing with material flow.
  • From 10 to 50% assets of enterprises are ‘frozen’ in stock.
  • More than 95% of turnover flow goes for logistics operations and only 5% actually goes for product production itself (including FMCG).
  • Based on date of European industrial association, transparent monitoring of material flow provides with reduction of material expenses by 30-70% (based on date of the US industrial association, reduction of stock happens by 30-50%).
  • In total structure of logistics costs, total costs for stock maintenance are equal to more than 50%.

A DAN DZO projects on improvement of stock management system have proved repeatedly this, obvious for us and our clients, truth. We are ready to propose you our services in stock management optimization related to the following aspects of activity:

  • Increase of stock management system efficiency on procurement and sales stage.
  • Stock management system expertise. Stock structure analysis.
  • Identification of surplus/deficit of stock comparing to dynamics of consumption/sales.
  • Calculation of effect from stock management optimization (reduction of stock amount, increase of demand satisfaction level).
  • Calculation of normative level of stock and/or order points based on seasonal prevalence and set up level for demand satisfaction.
  • Forecasting of dynamics for flow/sales on each inventory item/group for 306 months assessing reliability degree.
  • Development and introduction of efficiency indicators system for stock management.
  • Development and introduction of organizational mechanism for stock management, responsibility for the results.
  • Selection and introduction of stock management information support system.

Influence of stock management errors on profit of trade enterprise

 

Improvement of indicators as a result of stock management system  improvement

Indicator Outcome
Reduction of demand satisfaction level up to 95–97%
Increase of stock turnover

by 30–40%

Reduction of warehouse stock

by 20–30%

Reduction of illiquid assets share  

Logistic audit  | Motor transport logistics  | Railway logistics  | Warehousing logistics  | Inventory management  | Implementation of automation systems  | Outsourcing of the logistic processes  | Lean production  | Comprehensive improvement of an enterprise  | Organization of procurement activity