Outsourced Inventory Management
In 2017, 2Max Solutions helped businesses across Kenya achieve real cost savings by managing over Ksh 250m of client owned inventory.
2Max Solutions improved clients' working capital by Khs 25.1m through a unique dynamic stock profiling system. 2Max Solutions further improve client working capital by Ksh 3.4m through a combined approach of consignment stock and vendor managed inventory services.
How can 2Max Solutions help you manage your inventory better?
Through the analysis of existing data, 2Max Solutions provide a dynamic inventory profile based on the key characteristics of a client's inventory requirements including usage, reorder frequency, category management, critical parts, slow moving, obsolescence and minimum and maximum stock levels. The subsequent recommendations are then implemented to reduce not only inventory holdings but also the annual volume of indirect purchases.
Any product or part that turns more than a specified number of times a year will be considered for consignment or vendor-managed inventory purposes. 2Max Solutions also provide OEM generic part conversion programmes in conjunction with vendor partners to further streamline the cost of inventory to clients.
Stock standardisation and the rationalisation of stock lines form a further component of any successful inventory management portfolio and 2Max Solutions has extensive experience in the delivery of improvements in these areas.
Management of stock items
2Max Solution’s cloud-based, SAP-powered technology platform enables automatic replenishment of stock items on behalf of clients with minimal disruption to the business. Daily 'to-buy reports' are produced via the system which, upon approval, automatically distribute e-purchase orders to vendor partners for despatch.
2Max Solutions’s MRP (Material Requirements Planning) offering for stock items is further enhanced through automated control mechanisms such as daily critical parts verification and automated daily cycle counts, enhancing inventory accuracy and the engineering community’s confidence.
2Max Solutions Utilities
All 2Max Solutions inventory management solutions provide the latest technology to assist our clients in the maintenance of their inventory. These 'add-on' solutions are known as 2Max Solutions Utilities and include integrated bar code infrastructure, hand held devices, dynamic stock management programmes and integrated procurement solutions.
Why choose 2Max Solutions?
- 12Max Solutions has extensive expertise in outsourced indirect material procurement, understands the complexities and pitfalls of in-house management and use this knowledge to define the tried and tested approach of our specialist teams.
- 2The cost of indirect materials often begins to spiral as the labour intensity grows, operations become more fragmented and so-called ‘maverick buying’ proliferates.
- 3The lower value, repetitive nature of indirect material ordering means that it can account for as much has 50% of a purchasing department’s workload, a grossly disproportionate investment of time, manpower and money. Over time, organisations supplement and augment their processes, resulting in ever-expanding bureaucracies and red tape, turning potentially simple purchasing tasks into convoluted protocols requiring multiple sign offs and mountains of paperwork.
- 42Max Solutions can analyse and identify bottlenecks of this kind and introduce streamlined and efficient process changes.
- 5‘Maverick buying’ describes the propensity of employees to ignore protocols and guidelines when purchasing indirect materials – rather than using approved suppliers or framework agreements. In large organisations, so-called maverick buying can account for as much as 45% of all indirect procurement.
- 6By introducing new controls and streamlining clunky processes which were previously difficult to use, 2Max Solutions can cut out maverick buying and make a huge difference to the indirect material procurement costs.
- 7Outsourcing indirect material procurement to 2Max Solutions gives immediate access to the sort of expertise, experience and business intelligence which would otherwise take many years and a lot of money to acquire in-house, especially since the award-winning technology platform provides for complete end-to-end management, so driving greater control, compliance and therefore savings, which is why so many blue chip organisation have chosen to partner with 2Max Solutions.