Human care company Elekta has been shortlisted in the European Supply Chain Excellence Awards 2010 for its “Mission Control” initiative after achieving parts availability above 99 per cent. Recognised by the judges as an innovative supply chain practice, Elekta partnered with INFORM, a developer of supply chain optimisation software, to deliver this outstanding result.
Elekta provides treatment technology for treating cancer and brain disorders, so machine downtime is unacceptable as it could have serious consequences for patients’ health. Parts must therefore be available locally, at short notice. Elekta has implemented INFORM’s add*ONE Inventory Optimizer software solution within the “Mission Control” project which has resulted in parts availability above 99 per cent and inventory reductions of 13 per cent globally in a very short timescale. This has meant that even with a 25 per cent rise in stocked lines, cost savings of over £1 million have already been achieved, with more to come.
“INFORM’s technology has enabled us to predict fluctuations in customer demand and ensure that each of our warehouses around the world continues to stock the right parts, at the right levels,” explains Nigel Weston, vice president of supply chain management for Elekta. “add*ONE Inventory Optimizer proposes cost-optimised replenishment which has reduced our overall stock levels and saved us a significant sum.”
As a result of the “Mission Critical” initiative, Elekta has improved its customer service levels and is now able to offer enhanced levels of customer support. The inventory reductions achieved over the last 12 months are only the start of the transformation journey and it hopes to reduce this by a further £1 million by the end of 2010, while maintaining 99 per cent stock availability. The money that has been saved as a result of the initiative is being pumped back into Elekta’s research and development programme.
The winners of the European Supply Chain Excellence Awards 2010 will be announced at an awards dinner on Thursday 18th November 2010.
For more details on INFORM please visit www.inform-ac.co.uk
For more information about Elekta, please visit www.elekta.com