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30 March 2021

The management of our client embarked on a journey to gain control of their store operations, to improve the efficiency of their service delivery to the maintenance team and to save on costs.

Client Background

Our client is one of the top 100 companies in the Middle East with plants in several countries in this region. They bottle and can soft drinks using packaging machines from Tetrapak, Cidel and Krones.

The management of our client embarked on a journey to gain control of their store operations, to improve the efficiency of their service delivery and to save on costs.

Key Challenges

  • Rapid expansion at one of the factories over the last few years
  • Stores could not keep up with the growing demand from production,resulting in chaos and high direct purchase costs
  • No formal policies or procedures existed for purchasing or stores management
  • Over 25 000 stock catalogue items were kept in the store
  • Stores personnel had no formal On Key knowledge.

Quote

The client now has an effective system with supporting procedures in place to keep the store neat and clean and to render an efficient service
to the maintenance team.

Pragma Intervention

  • 5S training and audits
  • Identification of redundant parts and classifying parts of slow-moving items
  • Creation of applicable stores in On Key and movement of correct items to correct location in On Key
  • Redesigning stores layout
  • Crystal report writing in order to manage spares according to defined KPIs
  • On Key training in Materials Manager.

Performance Improvement

  • Cleaner and more structured warehouses – everything has a place and is in place
  • Effective operation with standard operating procedures for purchasing and warehouse management
  • Standardisation achieved by implementing a standards manual on rack numbering, On Key data, ABC analysis and stock takes
  • Identification of more than 10 000 redundant items that can be discarded
  • Financial control over purchasing, ordering and receiving
  • The client now has an effective system with supporting procedures in place to keep the store neat and clean and to render an efficient service to the maintenance team.

Tools and Technology

  • On Key Warehousing
  • Crystal Reports
  • Warehousing
  • ABC Analysis (criticality analysis)
  • Racking and Binning
  • Perpetual stock takes.