For more than forty years, Al Masaood Automobiles (AMA) has made its name in the automotive after-sales market as one of the largest integrated industrial, commercial, and service organizations in the Middle East.
A leading distributor for major automotive manufacturers in Abu Dhabi and the entire continental UAE, AMA chose Syncron Inventory to better equip their growing network of service centers and extensive spare parts dealers with an advanced inventory management solution.
case study
Challenges
With too much manual processing, including manual intervention in the stock order review process of every line item, AMA needed a more intelligent, more automated system. Their needs ranged from features like a management by exception feature to the ability to apply specific key performance indicators (KPIs) in system parameters. For an organization that values best practice methodologies in the automotive sector, and customer satisfaction as the number one ingredient for growth, their antiquated ERP system was in need of a major upgrade.
Case Study
Solutions
In their search for an efficiency-driven inventory management solution, AMA’s main service parts planning goals were to lower stock costs, reduce cycle times, and increase parts sales, ultimately maximizing profits, improving supplier relationships, and delivering exceptional customer service experiences. In order to reach their inventory planning and forecasting potential, AMA chose Syncron Inventory to implement into their demand forecasting, replenishment planning, and reporting processes and begin achieving their ultimate inventory management goals.
case study
Results
Before implementing the inventory management solution, the amount of manual intervention in the stock order review process was overwhelming. Now, by partnering with Syncron, AMA has their order review process down to an efficient 20-30% level of manual intervention, that percentage reserved for special orders like new model orders, warranty parts orders, and accessories orders. In addition to their process improvement, AMA also reported:
- Parts Turnover increase from 1.89 to 2.50 turns.
- MOS decrease from 7.13 to 4.84 months.
- Suggested order review time from four days down to two.
- Order frequency increase from once weekly to bi-weekly.
- Stock order generation lead time decrease from 61 days to 46.