Raw Materials Analysis

Analysing raw materials planning to achieve production conformance

 What level of availability should I have for my raw materials?

How frequently should I be ordering?

What are the impacts of supplier MOQs and reliability?

How do I minimise obsolescence?

Raw materials management is clearly a key driver of Supply Chain success. But how do you successfully manage the balance between working capital, tiered purchase pricing, inventory and write-offs?

Understanding the impact of availability can really inform conversations about costs and drive informed decisions on EOQs and pricing. For example: ​

  • achieving 98.5% FG availability for a product with 4 inputs (assuming 100% manufacturing conformance)​
  • requires the availability target of those ingredients to be 99.6%+​

Raw materials management is clearly a key driver of Supply Chain success. But how do you successfully manage the balance between working capital, tiered purchase pricing, inventory and write-offs?​

Understanding the impact of availability can really inform conversations about costs and drive informed decisions on EOQs and pricing. For example: ​

  • achieving 98.5% FG availability for a product with 4 inputs (assuming 100% manufacturing conformance)​
  • requires the availability target of those ingredients to be 99.6%+

Our approaches enable to full impact; e.g. the cost & risk of obsolescence, the value to the business of lower MOQs, the impact on pallet spaces, the impact of increasing FG service levels - to be understood and the resultant options, costs and benefits clearly communicated across the business.

Talk to us today
Talk to us today

to find out how to take your next steps towards embedding stability and responsiveness in your Supply Chain.