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Tuesday, June 4 • 11:30am - 12:15pm
The greedy search for a healthy purchase strategy: Stockout X Overstock

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Thanks to this initiative, we've accomplished a remarkable cost reduction of approximately 120 million reais in less than three months at LMBR. This achievement underscores the critical importance of this project for other business units and affiliates within our organization, particularly those aiming to optimize Relex parameters for enhanced performance. By leveraging our success, we can set a precedent for outstanding results within a short timeframe.

As logistics professionals, we understand the delicate balance between overstock and stockout situations. Therefore, this presentation will not only showcase our achievements but also illuminate the pathways to worldwide solutions within the ADEO group. Our insights and strategies promise to revolutionize logistical approaches, paving the way for more efficient and effective operations across the board.
The project is essential to solving a critical problem in the company: the lack of a personalized approach to purchasing materials in its stores. Currently, a fixed value is used for all materials and stores, causing a high increase in the overstock indicator, in addition to affecting the availability of products that we end up offering to the customer. This optimization is vital to avoid financial losses for the company and ensure the ideal time to purchase product stock to meet demand when necessary.

The central objective is to analyze different purchasing scenarios for each item in stock, determining the ideal scenario that balances material availability with the prevention of excess stock by using advanced analytics and data sciences techniques. We have the following methods as our choice criteria, when a material has a registered trigger.

If the "trigger" is not reached, we will not purchase for stock.
EXAMPLE: I need 6 units in my stock but the supplier only delivers 10, assuming we have an order trigger level of 80%, I would need to have at least 8 units needed to actually issue the purchase order.

If the "trigger" is reached, we make the purchase until the desired level of packaging is reached.
EXAMPLE: I need 6 units in my stock but the supplier only delivers 10, assuming we have an order trigger level of 30%, I would need to have at least 3 units needed, so I will issue the purchase order and buy the 4 units from more than I need to achieve supplier packaging.

Speakers
avatar for Rafael CUNHA

Rafael CUNHA

Data Analyst, Leroy Merlin Brazil
My name is Rafael Fernandes Cunha, and at 20 years old, I am deeply passionate about leveraging artificial intelligence and analytics to drive value for people.I embarked on my journey with LMBR in 2022 as an intern on the data team, with a primary focus on optimizing supply chain... Read More →


Tuesday June 4, 2024 11:30am - 12:15pm CEST
🎤 Little Stage
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