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IMAFS has been managing and optimizing inventories for over two decades. Our track record speaks for itself. Our robust artificial intelligence-powered solution has been instrumental in numerous success stories throughout the years, and we would love to share a few with you from satisfied customers of all sizes who allowed us to do so.

The Canadian Malartic Mine

The Canadian Malartic Mine

Environment

The Mine Canadian Malartic is one of the biggest gold mines in Canada. The first gold pour was in April 2011, and commercial production began in May 2011.

Mandate type and description

Stock Optimization

Operational context

To ensure production efficiency, companies must minimize equipment downtimes. During the start-up, it was decided to invest in important levels of stock to support production and maintenance. It was critical to do so since Canadian Malartic didn’t have any history or spare parts requirements. After two years of operations and building consumption history, mine management wanted to improve the inventory management processes and their results.

Initial problem statement

Canadian Malartic managed Min Max manually on some 16,000 items. The inventories were continually increasing. At the same time, there were many stockouts, a little over 5%, for critical and high consumption items, even with a stock investment of tens of millions of dollars. A stockout in the mining industry could potentially lead to a disruption in production that has major financial impacts. It is imperative to minimize stockouts.

Solutions

In Spring 2013, management created an inventory analyst position and provided training in the modern concepts of inventory management. It also decided that inventory parameters needed to be updated. To do so, management opted to use IMAFS, an inventory optimization software available in a Cloud mode. IMAFS software was already integrated into their maintenance management software, Guide TI, from COGEP.

IMAFS software optimizes inventory management parameters by calculating optimal Min Max to achieve the customer’s service level objectives while minimizing stock levels.

Firstly, IMAFS was used to review the ABC classification of items by product family (plant maintenance parts, mobile parts and consumables). The classification draws attention to critical and high usage items. IMAFS also measured Canadian Malartic’s parts availability. It was 93.3% for high usage items and 95.3% for critical parts. With the software, they were able to set their parts availability target to 98% for those items and calculate parameters that would help them achieve it.

IMAFS dynamically calculates every month :

  • supplier delivery lead times by item and by transportation mode
  • consumption forecasts by item based on historical demand
  • Min Max for each item based on the forecasts, service level goals, lead times and other parameters

In June 2013, Canadian Malartic implanted IMAFS parameters for mobile equipment after the analyst revised them. In October 2013, they implanted IMAFS parameters for the consumable items, and they gradually rolled out the parameters for the items supporting plant operations.
IMAFS Cloud also gives management a dashboard and exception reports to track and measure their inventory performance.

Results

In February 2015, 80% of the items in the mobile and consumables families and 50% of the plant items were managed by IMAFS.

For mobile spare parts and consumables, IMAFS helped eliminate 80% of stockouts for high usage items and 50% of the stockouts for critical components. For the plant items, stockouts for high usage items were reduced by 75% and by 35% for critical parts. The service levels are on target.

For the items controlled by IMAFS in February 2015, inventory levels have decreased by 23% for mobile parts, by 20% for consumables and 9% for the plant items since June 2013.
Overall, Canadian Malartic eliminated 78% of stockouts for items with high usage, 45% for critical components and reduced stock levels by 14% for the items controlled by IMAFS.

Canadian Malartic eliminated 78% of stockouts for items with high usage, 45% for critical components and reduced stock levels by 14% for the items controlled by IMAFS.

Canadian Malartic would like to increase the number of parts controlled by IMAFS to take advantage of optimized inventory parameters.

M. Roch Trépanier, Supply Chain Superintendent, said: “I appreciate the quality of IMAFS inventory optimization functions and the continuous support of their team. Our inventory analyst appreciates the ease of use of IMAFS, the friendliness of the exception reports and the flexibility in creating new ones. Our internal customers are telling us how much they appreciate the 75% reduction in stockouts. The financial management team is happy with the 14% inventory reduction for items controlled by IMAFS parameters over 18 months.”

Canadian Malartic eliminated 78% of stockouts for items with high usage, 45% for critical components and reduced stock levels by 14% for the items controlled by IMAFS.

The Iron Ore Company of Canada (IOC)

The Iron Ore Company of Canada (IOC)


The Iron Ore Company of Canada produces iron ore for steel, aluminum for cars and smartphones, copper for wind turbines, diamonds that set the standard for “responsible”, titanium for household products and borates for crops that feed the world.

Objective:

Quickly reduce the inventories without decreasing the service level and ensure better control of items

Solution:

Use IMAFS to classify items according to their criticality and their demand and calculate optimized inventory parameters (Min Max) according to this classification and service objectives

Result:

  • Global inventory reduction of 15% within the first 10 months (29% for items controlled by IMAFS), without any diminution of service level
  • Maintained availability rate of critical items
  • Better inventory control

Société de transport de Montréal (STM)

Société de transport de Montréal (STM)

Environment

STM operates nearly 1,600 buses and 759 metro cars. It operates parts manufacturing facilities and performs all maintenance activities in-house including the major maintenance. STM also performs the maintenance of its metro stations and the many buildings of its network. It stores over 250,000 items with its network of more than 30 stores.

Mandate type and description

Inventory management process improvements.

Initial problem statement

Over the years STM has experienced a continuous increase of its inventory. The company did not have the necessary tools to properly optimize its inventory and its human resources were inadequate in number and lacking the expertise to manage it.

Solutions

Since 2007, the STM has invested great efforts and means to improve its processes, tools and resources for the management of its inventory. STM had added skilled resources with university degrees in addition to offering several training programs to its internal resources.

In 2008, after a comprehensive study of its alternative and following a public tender, STM had selected the inventory optimization software IMAFS.

Results

Overall, parts availability has increased from 76.4% to 94% between June 2008 and January 2011, while inventory levels remained stable at $ 34,750 million. Such an improvement in parts availability with a stable inventory is remarkable in itself.

This increase in parts availability had a significant impact on the number of unavailable vehicles, which fell more than 25% between 2008 and 2010.

The stability of inventory levels is indeed remarkable since it had always experienced steady growth. From January 2003 to June 2008, STM’s store inventory rose from $ 15 to $ 35 million. The increase was partly due to significant projects, changes in the valuation of items, and the introduction of new equipment.

Inventory levels have now stabilized despite STM continuing to pursue new projects, and it increased the numbers of stocked parts.

Since 2008, this achievement has been accomplished even though over 31,700 new parts-stores were created during this period, an increase of more than 15% of its number or value. There have been investments of over $ 5.27 million in new parts and decreases of less than $ 250,000 for obsolete items. The number of lines purchased has also decreased by 14% and transfer order lines by 6% for store items, which resulted in lower costs of operations.

The operational improvement was also completed through an efficient change management process of the new roles and responsibilities and the culture to adopt more scientific approaches.

If we isolate only the parts that existed before the implantation of IMAFS and have not been declared obsolete, the total inventory levels decreased from $ 33.65 million in June 2008 to 29.24 million in January 2011, or down 13.1% while the overall service levels for these items increased from 76.4% to 94%.

If we isolate only the parts that existed before the implantation of IMAFS and have not been declared obsolete, the total inventory levels decreased by 13.1% while the overall service levels for these items increased from 76.4% to 94%.

The results are undoubtedly due, to some extent, to the implementation of IMAFS, the efforts of the team, the business process improvements, and the improved availability of machined and manufactured parts by STM.

Executives from STM are pleased to observe that there is still potential for further improvement of inventory management using IMAFS and with the sustained involvement of internal resources.

Salade Etcetera ! Québec

Salade Etcetera ! Québec

Salade Etcetera! Inc (a division of Vegpro International) is a family owned business founded in 1998. The company sells prepackaged salads on the east coast of North America

Objective:

Occupy the store space with the right parts in the right quantity and increase the level of service of parts consumed frequently

Solution:

  • Implement IMAFS to have a dynamic management of Min Max which takes into account the service objectives and the space available in the warehouse.
  • Use the IMAFS exception lists to clean up inventories and monitor suppliers

Result:

  • Overall inventory reduction of 2.4% in 5 months (9.4% if we only consider the items managed by IMAFS)
  • Overall reduction of 17% in stock shortages (29% on class A items)

There's nothing like a conclusive ROI evaluation that proves without any doubt that IMAFS's inventory management solution is the right one for you.

After all, who wouldn’t want to create substantial savings and increase profits?

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