Delays ranging from a few days in Spain in six weeks at Japan

Agfa, which applied the multi-échelons method to treat its supply chain world of consumables for graphic printing industry, was able to reduce 30 of its stocks, without degrading the rate of the final customer service around the world. An essential point was the management of the change of personnel involved in the project. "We began with an inventory of our stocks to Mortsel, near Antwerp: it then amounted to 160 MEuro (s)", explains Geert Lammens, manufacturing process manager.

The multi-échelons method is designed to reduce stocks

This first project was to reduce the 60 MEuro (s). Project which was completed in late 2005, and has been a global extension on 14 production sites that have benefited from the optimization cabinet Möbius multi-échelons technique. It offers to companies managing inventory at different levels of their supply chain the ability to reduce storage costs.

The distribution of Graphic Systems Distribution Agfa Gevaert division supply includes stocks de la Agfa de la Agfa de la de la Agfa Agfa Agfa Agfa Agfa- 4 500 References of products are distributed. Delays ranging from a few days (in Spain) in six weeks (at Japan).

Depress the stock of finished 18-13 million products

The centre of distribution Worldwide of Wilrijk is in charge of two functions: direct (on a single level) distribution of products for most of the clients in Europe (remote 700 to 1 000 km of Antwerp), and the re-supply of the regional centres. "Prior to the introduction of the multi-échelons technique, we seek to achieve in the central warehouse of 97 for direct customers and service of 90 for replenishment requests." "The multi-échelons methodology should provide a 30 improvement", says Geert Lammens.

The optimum situation is that where it retains more stock of security at the central level, and where this stock is deported at the end of string, at the local level. Therefore, if it decreases the rate of service from the central warehouse for the benefit of local shops, it will be able to reduce substantially the level of the central stock... with however the risk of not being able to be used, occasionally, the command of a local store. It will have to wait his command.

Nevertheless, it is inconceivable to contemplate a situation where local stores would be unable to serve their local customers: they have to guard against a degraded situation by increasing the level of local safety stock to maintain this service to the final customer. But this increase at the local level is not related to the decrease in stock that can achieve at the central level. Finally, the end customer service will be maintained by slightly increasing the stock at the local level, but through a huge reduction of cost at the central level.

In summary: centrally maintains that a safety stock reduced to serve very correctly direct customers.

"After simulation the Agfa context, I think that can depress the stock of finished products of 18 MEuro (s)-13 MEuro (s)", says Geert Lammens, who wishes to extend the project beyond the Worldwide Distribution Center and launch a similar project in the regional center of Dayton (USA), which is in relation to us as Canadian local centres.