Warehouse management: optimizing procurement and reducing stock and shortages

The reason the client contacted us was that they had a set of approximately 3,000 SKUs in the warehouse, managed visually by operators. This system generated significant issues: production shortages, overstocking caused by incorrect planning, and a high number of inefficiently generated orders. Our goal in this project was clear: to define and implement an effective procurement policy capable of resolving existing criticalities, improving production logistics, and material control.

We intervened with a structured approach, starting from the analysis of consumption and the characteristics of the materials managed in the warehouse. Based on these analyses, we defined specific procurement policies, distinguishing between requirement-based management and controlled stock management. For stock-managed SKUs, we introduced parameters such as procurement lot, safety stock, and reorder point. The identified solutions were validated through a simulator we developed, which allowed for the evaluation of different scenarios in terms of stock levels, shortage frequency, and number of orders. Once the optimal configuration was identified, we implemented the parameters within the company’s management system, making the model operational and integrated into the processes.

The project improved warehouse management, allowing for a reduction in stock levels and ensuring material availability without increasing operational effort.