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Improvement supply & inventory management

April 17, 2019 5099 Views

Scientific Instruments Division, one of the key divisions within ThermoFisher, markets and supplies instrumentation for laboratory and industrial settings. Including service contracting.

Working with country specific service organizations that each have a stock keeping function, the management perception was that supply and inventory management of spare parts could be professionalized. Currently, there are many buffer stocks due to limited European stock visibility. A side effect of this is the relative high portion of non moving stock.

The solution presented focuses on improvements in planning and inventory management policies:

  • Store and distribute parts via the most cost optimal channel;
  • Redirect not used stock to the factories;
  • Apply aggregated provision rules;
  • Create uniform part numbering.


  • Reduction of supply chain costs by distributing spare parts through the optimal distribution channel;
  • Significant balance sheet improvement by relocation not used stock more upstream in the value chain;
  • Additional balance sheet improvement due to a decrease in provision; more upstream parts storage implicates a higher spread in parts exchange.