Perpetual Inventory with Variance Reporting
A leading worldwide designer, manufacturer and marketer of motion control products, technologies, systems and services needed to have all parts counted, without impacting on production.
REQUIREMENT
The manufacturer needed to ensure all the production parts were counted without impacting or stopping production. The customer required the following:
- All production parts to be counted, including screws and nuts
- Variance reporting
- Custom reports created
- Perpetual inventory required all year
SOLUTION
Following discussions with all stakeholders, and understanding what details the manufacturer required about the perpetual inventory project, RGIS implemented the following:
- A catalogue was created of which parts were to be counted, and when
- Inventory was scheduled throughout the year
- Variance reporting completed and checked
- Discrepancies updated to customers system
- Schedule generated from the customer’s system in preparation for next count
- A team of 6-10 experienced RGIS staff were organised for each count
- Small parts were weighed with a piece balance to give accurate inventory numbers
RESULTS
By partnering with RGIS, the manufacturer were able to understand their inventory quantities without impacting on production. The results were very positive:
- The customer saved on down-time, as previously they lost two days of production when completing the inventory in-house
- Production no longer needed to stop, with RGIS regularly completing perpetual inventory for the customer
- RGIS scheduled regular perpetual inventories going forward, throughout the year, so parts are now constantly counted, checked and data is accurate