Stock management optimisation and cost allocation within a medium-sized general construction company

Abstract

The purpose of this consultancy report is to map and give a clear insight into the current logistic processes at De Peuter, identify the root causes of the analysed inefficiencies and give a multitude of explicit recommendations in order to optimise the company’s stock management processes and cost allocation. After conducting and examining internal as well as external interviews, empirical on-site observations, several best-practices and academic research, four pathways were investigated as possible solutions. Firstly, logistics improvements focused on improvements and innovations of the current process itself. Enhancements that can be implemented regardless of integrating with and purchasing external software or partnering up with other companies. Secondly, there has been made a comparison between the different set of possible logistics add-ons which would be integrated with the current ERP system and provide an automation of the company’s stock -and cost flows. Notwithstanding the quality off the add-ons, the main concern relates to the integrability with the present ERP system, potential collaboration with an external company and the cost price. Thirdly, different ERP-systems for construction companies on the Belgian market were mainly considered based on their customised stock management solution for the company. Finally, an in-depth look was taken at relevant asset management solutions and it was verified whether these can have a significant impact on the company’s stock management. The final suggestions were retained while keeping the current as well as short -and medium-term strategy of the company in mind. The recommended actions consist of: Logistics improvements (opting for internal process improvements) - Following clear-cut procedures when ordering items - Registering the equipment and material in an online list - Establishing a clear job allocation - Restructuring the warehouse Logistics add-ons (opting for external hard -and software solutions) - Investing in the Zetes or Admin2Win solution Solely implementing a set of explicit recommendations won’t cut it for actual change to take place. De Peuter needs to effectively manage this change process and find a way to not only connect to their employees but also get them to genuinely understand how their new set of actions can significantly decrease the time spent on excessive, inefficient work related tasks, impact the company’s logistics processes and ultimately let the company work close to productive efficiency.