Solution

Strategy
Set & communicate goals for entire company:

Flat decided to focus majority of effort and resources on flat product inventory management Goal: Reduce $10-15 million in inventory Assigned key Executive to flat inventory goal Extrusion since the purchase order size is significant to maintaining the margin, which is a critical company goal and the inventory is highly specialized and reserved, it was decided to make this a 2nd priority to flat. Goal at a minimum, keep inventory levels flat (reduce if possible)

Solution
People
Each branch assigned an Inventory Manager

and/or resource to be responsible for inventory levels and coordination

Larger branches dedicated resources Smaller branches resources not fully dedicated but inventory was considered a key priority

Reviewed the skillsets required for the role vs.

potential candidates promoted from within to get the right people in the right roles Developed a team set common goal, invested in training, meetings etc.

Solution
Process (High Level) Metrics developed inventory metrics (by branch, by product line) and tracked daily = management focus Pay tied pay to performance/ metrics (inventory became one of the key components for bonus for ALL functions) Focus the Executives emphasized the importance of inventory and it became one of the key topics during branch meetings/ conversations Communication/ Priorities - Held monthly meetings with all Inventory Managers, Branch

Solution
Process (Inventory Planning) The Inventory Executive, Inventory Manager/ resource, Branch Manager and other key parties met to review specific contracts, inventory, etc developed plans to address for each specific branch/ contract Identified and cleaned up data integrity issues Developed overstock lists and worked with Sales to sell off inventory Developed process to check rems to make sure to utilize available inventory prior to placing a new PO Completed a review of reserved inventory for

Solution
Process (Inventory Planning) Developed process to share inventory among branches and encourage transfers when best for total company bottom line (Inventory Managers met to review common items once a quarter at minimum in person and weekly by conference calls) Provided inventory planning training Worked with mills / customers to increase the use of material via spec combinations etc (can use same item to fill more customer orders)

Solution
Process (Inventory Planning) Reviewed incoming POs for opportunities to push out or cancel if possible Developed a rough S&OP (sales and operations planning) analysis and meeting process evolved over time with improved people, process, and tools Technology/ Tools
Leveraged the Excel tool (poor mans MRP) Updated based on Inventory Manager input Provided training Utilized for S&OP process Developed Additional reports to manage