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Inventory Planning
Inventory Model
Ryder has maintained the following approach to inventory management that is practiced
in more than 700 Ryder maintenance facilities resulting in substantially reduced costs
of parts acquisition.
Establish Inventory Value
Careful consideration is given to the following items when establishing the amount of
inventory to maintain while targeting a total dollar amount that does not exceed the
average charge out of parts from inventory in a 90-day period:
- Mix of fleet and parts
- Hours of operation and the ability to access parts after hours
- Size of the work
force whose productivity may be jeopardized by waiting for parts
- Customers dissatisfaction as a result of delays or Ryder's inability to complete necessary
repairs.
Establish Appropriate Min/Max Levels
In an effort to establish the appropriate stocking levels that optimize inventory and
performance consideration is given to repetitive parts necessary for the performance of
preventive maintenance and the proximity and lead-time to the ordering facility. In
addition, order history is maintained to adjust levels on a quarterly basis. Roles and
responsibilities are also defined and documented to ensure consistent implementation of
the agreed upon inventory model.
Planning Order Cycles
Weekly order cycles are developed to minimize reaction purchases leading to costly
mistakes and to reduce convenience purchases from multiple supply points at higher
prices. Weekly purchases have been found to reduce transactions affecting shop
productivity and reduce costs associated with multiple handling and deliveries.
Opportunistic Purchases/Obsolescence
Maintenance facilities monitor overstock specials in an effort to capture savings
through bulk purchases at reduced costs. Maintenance facilities also review and
co-ordinate the returns of slow moving inventory at 6-month intervals.
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