GVB optimises inventory of consumables and rotables

Challenge

A Lanza implementation project

GVB is the public transport company of Amsterdam. Gordian and GVB worked together to professionalize the inventory control of spare parts. GVB invested in the implementation of an optimization tool, training of their staff and made a start with setting up a continuous improvement cycle.

Result

The reorder points and reorder quantities determined in Lanza are uploaded by GVB in their ERP System on a periodical base. Gordian built a KPI dashboard to enable GVB to measure their performances. The dashboard, for example, shows that the stock availability recently has been 98% or higher. The dashboard has drill down functions on part level, which simplifies the way to find root causes and initiate improvement measures.

Approach

Implementing Lanza

Lanza is an optimization tool with analysis, reporting and export features. The amount of spares in GVB’s parts assortment is large and diverse in nature. For example, the process for repaired parts differs from consumables. Gordian implemented the specific processes within Lanza.

Gordian classified GVB’s assortment based on price and demand frequency in order to apply different inventory strategies. The goal is to create balance between working capital, stock availability and operational costs. Expensive slow movers, for example, require another approach than cheap fast movers. The reorder points and reorder quantities determined by Lanza are periodically uploaded to GVB’s ERP System. Gordian built a KPI dashboard to enable GVB to measure their performance. For example, it shows that the stock availability recently has been 98%. The dashboard has drill down functions on part level, to find root causes and initiate improvement measures.

Implementing continuous improvement

Ensuring improvements of results requires a continuous improvement cycle. Gordian trained GVB to implement a continuous improvement cycle for consumables. These acquired skills are used by the tactical planner to calculate inventory control parameters, analyse the performance and initiate improvement actions when necessary. In order to improve further, Gordian supports GVB to professionalize by means of a KPI report, optimization of rotables, and by a provisioning model.