Supply chain i Inventory manaGement
“Regarding scheduling and planning and keeping static stock to a minimum
software, buy-in from personnel is a is a difficult balance to achieve but
must. Businesses often underestimate the necessary all the same. In my experience,
investment needed to encourage workers this can only work if planning personnel
to swap the old for the new, which leads within defence and industry work
to inconsistent working and breeds effectively together.”
inefficiencies.”
Acting on information supplied by such Fine tuning the process
technology becomes a problem if the Achieving an efficient inventory
workforce in question fails to trust the management structure is a continuous
data produced. Gall believes that without process, involving a high degree of
adequate staff training, technology commitment in terms of people,
is rendered useless. He explains: processes and the correct utilisation of
“Implementing the best technology on technology. It’s attainable and now more
the market is the easy part – ensuring staff than ever, should be at the top of every
know how to use it to its full potential corporate agenda if staying ahead in a
requires investment of both time and competitive market is a priority.
Graham Best: The Service Business
resource. But, if you’re serious about the “Remaining lean and agile when it
end goal, it needs to be a priority. You comes to inventory management puts
technology is the foundation of inventory wouldn’t try to drive a car with an empty BAE Systems in a position of readiness
optimisation.” fuel tank but if you purchase technology and sustainment,” Gall concludes. “It’s
and fail to consider staff training needs, a never ending process, but worth
Weighing up the technology that’s exactly what you’re doing.” the investment if means we’re able to
Technology in the past decade has But it’s not all about technology. become more responsive to variable
changed and simplified the way many Equipping personnel with the right demand, recognise and satisfy the
businesses operate. Aftersales service, and knowhow is fundamental. Planning unspoken requirements of our customer
inventory management is no exception. on such a scale, at short notice and to base, and ultimately maintain the high
Scheduling and planning software tight deadlines requires a high level of standards associated with our brand.” ❙
has the ability to optimise inventory competence which comes from hands www.theservicebusiness.com
management, eliminate waste from on experience, joined up and consistent
the supply chain and ultimately save working practice and an ability to
thousands of pounds on excess stock. prepare for the unexpected.
Obtaining a clearer visibility of Gall supports this theory: “Many
forecasting needs and working closely inventory systems in manufacturing
with suppliers and customers alike not environments embrace a just in time
only opens up clearer communications approach to spare parts provision in
paving the way for more productive order to ensure a lean operation. But in
working relationships, but also provides A&D, this approach has to coincide with
a holistic view of supply and demand – being in a position to react quickly to
what the real cost drivers are and how changing or unanticipated demand. Being
much leadtimes are costing in terms of prepared for the unexpected is rule one
inventory timings and part availability. for the armed forces and therefore needs
Technology’s role in achieving this to be a top priority for their suppliers.
level of visibility and a subsequent Getting the balance between having
reduction in waste is significant, yet enough stock to fulfil unexpected need
many companies with such infrastructure
in place are failing to shed the excess
“Remaining lean and agile when it comes to
fat. Best claims one reason for this is
that implementation is one thing and
inventory management puts BAE Systems in a
utilisation is another.
position of readiness and sustainment.”
“Underutilisation of technology is a
universal theme across sectors,” he notes. Graham Gall, BAE Systems
aerOSPaceManUFactUring | nOveMber 2009 19
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36