We're very pleased with what we're seeing. Overall the system is doing a very good job of looking ahead, projecting when a stock out will occur and then getting replenishment orders released to prevent it.
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Coopersville, Michigan (PRWEB) October 24, 2013
In its drive to continually improve customer service, SelfLube has embarked upon a new project to significantly upgrade its inventory capability. New racking systems have been ordered and its physical warehouse is being reconfigured to make things more efficient and to enable the company to handle much higher volumes. The company is also making significant upgrades to its inventory management system.
"SelfLube produces precision components for the tooling industry, many of which need to be stocked inventory. And, like every retailer, distributor and warehouse operator in the country, SelfLube is confronted with the problem of keeping the right item, in the right quantity, in the right place, at the right time," explains SelfLube Owner Phil Allor. "But with SelfLube, there is an added twist: lumpy demand."
To effectively manage inventory one needs to project future demand so that replenishment orders are released to manufacturing early enough to prevent a stock out. It is relatively easy to project future demand when there is a nice smooth demand stream. A simple average might do. But, as the demand becomes discontinuous or lumpy, the job becomes more difficult. Averages become meaningless. Statistical tools must be employed.
SelfLube's systems upgrades include an array of new statistical algorithms, custom configured for SelfLube to address the lumpy demand situation. The programmers have now done their work and SelfLube has been running with the systems upgrades for the past month or so.
"We're pretty pleased with what we're seeing. Overall the system is doing a very good job of looking ahead, projecting when a stock out will occur and then getting replenishment orders released to prevent it."
SelfLube is the leading U.S. manufacturer of precision components used in molds, dies and special machines and supplies build shops throughout North America. Its product line of some 8,000 standard part numbers includes wear strips, wear plates, bushings, gibs, parting line locks, lifter slides and related items. SelfLube's full product line can be viewed online along with cad models of each part number.