Due to that we would like to follow up in this matter. We will provide you the actual status and results out of identified “inventory” reduction potentials in the PM Group until September 2016. Values attached are balance sheet figures (gross values, not consolidated, without currency adjustments, before inventory depreciations).
During the initial analysis period a total potential of approx. 20% in inventory reduction - to support an adequate working capital result for the ProMinent Group - was identified. The percentage value is an overall target and does not reflect individual regions and country objectives.
Best practice subsidiaries have shown that concentration and reduction of “slow/non mover“ materials on stock as well as the adjustment of “replenishment parameters” (ordering smaller lot sizes more often) for high runner articles, without remarkable negative effects for over-the-counter business, are suitable drivers for success. See, amongst others, for example gained results in main production plant Heidelberg: Significant stock optimizations.