Warehouse Optimization Project Improved Inventory Accuracy From 10% to 97%, Verified <8,500 SKUs Valued at ~$24M, and Improved Layout Reducing Average Pick Time by 75%

An aerospace and defense company.

The Challenge

Our client, an aerospace and defense company, engaged TriVista to review the inventory control and management processes at their manufacturing facility. Inventory accuracy was reported between 10-20% after the previous 2 audits resulting in widespread material shortages. Planning and production teams were impacted daily by inaccurate inventories and leadership was unable to provide frustrated customers with accurate shipment dates for a growing backlog of past due orders valued < $30M.

Our Approach

• Mapped the process for all aspects of inventory flow from receiving to shipping including physical movements and system-related transactions
• Identified root causes of recurring inventory inaccuracies
• Developed rapid improvement plans with leadership team including resource requirements and timing
• Lead cross functional teams utilizing kaizen methodology for root cause elimination and rapid inventory accuracy improvement
• Developed process controls and standard operating procedures for inventory control and material flow
• Aligned on sustainment plans and coordinated project handoff with Director of Operations

The Results

The team executed strategies around people, process, and systems that eliminated root causes of inventory inaccuracies and improved inventory accuracy from 10 to 97%. Additional improvements include implementation of barcoding and handheld scanners, control of warehouse and system access, optimization of layout and bin locations, and elimination of 10 safety issues.