Operational Improvement | Process Mining
Identifying operational inefficiencies in stock reconciliation through data-driven process analysis.
Client Context
GPC Logistics operates a large warehouse network supporting complex inventory and spare parts management processes.
The organization needed greater visibility into stock reconciliation performance across multiple warehouse locations.
Challenge
The stock reconciliation process involved comparing available inventory across 11 warehouses with ERP accounting records.
Key challenges included inventory discrepancies, inconsistent accounting methods, varying stock handling practices and different reconciliation frequencies across warehouses.
These inconsistencies created operational inefficiencies, delays and unnecessary costs.
Approach
BPM CYT used Process Mining and process analysis to evaluate the stock reconciliation process across warehouse operations.
This analysis provided end-to-end visibility into process execution, bottlenecks and performance variations across locations.
The engagement identified major inefficiencies affecting throughput, cost and operational performance.
Outcome
The analysis uncovered significant optimization opportunities in stock reconciliation operations.
The initiative generated approximately $300,000 in annual savings, based on an investment of $81,000.
Key improvements included reduced rework, lower throughput times and decreased opportunity costs.