Customer Success Stories

"We have reduced leadtime and order sizes. Service level on finished goods is above 96%"

Jan Erik Sørensen
Business Development, nkt cables

nkt cables frees up EUR 1 million and boosts level of service

In less than two years, the production company has reduced its stocks and boosted its level of service by introducing transparency and in-depth ABC analyses.

“If you want to avoid encouraging inefficient behaviour, it is essential to involve sales in the priorities you apply on the purchasing side and vice versa,” explains Jan Erik Sørensen, Project Manager, Sales & Marketing at nkt cables in Asnæs, Denmark.

In practice, this means never prioritising a C-product at the expense of an A-product.

Jan Erik Sørensen, Project Manager, nkt cables

Create results with simple tools

By highlighting priorities throughout the organisation in the form of posters displaying ABC codes, the company succeeded in optimizing production and purchasing.

Every week, production staff meet with counterparts from the sales and purchasing departments to prioritize the production plan and backorders with the assistance of ABC Analyzer.

A before C. No argument.

nkt cables plans production so as to safeguard its core business at all times. In practice, this means never prioritising a C-product at the expense of an A-product. Production planning is vital for the high service.

The ABC project was launched in October 2012, and one year on, the results speak for themselves.

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Goal

Reduce raw materials stock, and avoid backorders on important finished products

Solution

Enhance communication and visualize priorities. All staff members working with purchasing of raw materials in production or sales, know which finished products are most important (AA), and aim to secure this part of the business

Results

In one year the raw materials stock was reduced by 20 %, and the service degree on finished products went up to 96 %

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