The Best Laid Plans… Connell keeps you on course
On its face, inventory planning is a day-to-day, operational level function that works to avoid stock out situations so machines can continue digging and production stays on schedule. But inventory planning goes much further than merely setting min/max levels and letting the computer spit out orders. With so many variables at play between the manufacturing process and end user utilization, it is critical to stay attuned to the complete supply chain when conducting what is certainly more of an art than a science.
Michael Gilbert (email@example.com), Connell Analytics and Planning Manager, has spent his 30+ year career optimizing this process. He keeps in close contact with mines to get up to date usage and tightly monitors production plans and logistics information to provide purchase recommendations that ensure adequate inventory on-hand.
“I always keep the customer’s best interest in mind when they attempt to order excess stock, even when it means fewer sales for Connell. Capital tied up in rows of stagnant inventory is obviously not the best use of a mine’s resources, and serves no ones’ interest long-term,” said Michael. “It adds up quickly, especially where those amounts attract debt service. The opportunity cost of that capital expense is just too high.”
In addition to order planning, Connell’s optimized inventory planning also includes certain levels of vendor-held inventory. By holding inventory for key customers, Connell is essentially assuming a large portion of the mine’s inventory carrying cost. This also has the benefit of slashing lead times in half, while maintaining the continuity of supply. Considering that the industry’s contraction has extended lead times, Connell is uniquely positioned to assist its customers in normalizing product flow both now and in the future.
In today’s mining environment with executives looking to cut costs wherever possible, utilizing Connell’s optimized inventory planning means allowing capital expenditure to go where it better serves the mine’s bottom line. This puts the focus on inventory planning, as the value it provides a mine is realized at both the operational and executive levels.
Connell's optimized inventory planning services are available to our customers worldwide. We are an additional resource connecting the supply chain to product utilization in a dynamic way that overcomes issues affecting even the best laid plans.