Hi-Definition Transformation Problems > Corporate Internal Reorganization > Merge Org Units or Inventory Organizations

You have too many org units or inventory organizations, and you want to merge them together.

Profile

A utility company had thousands of warehouses across the city to stock their cable, poles, meters, and other supplies. Each warehouse was set up in their Oracle E-Business Suite as a separate inventory organization. Every time a work order came in, the truck drivers had to check the inventory at the closest warehouse and if the item was out of stock, had to check 4 or 5 other warehouses to locate the item. If the item was not used, they had to go back to each of the warehouses to have the item restocked. Sometimes a warehouse would reorder an item when the same item was overstocked at a warehouse just a few blocks away.

Solution

The company decided to consolidate their inventories into 4 warehouses – one in the north, one in the south, one in the east, and one on the west side of the city. They used eprentise Inventory Reorganization software to consolidate their inventory organizations. The result was a 20% savings on the warehouse costs, approximately 40% savings of time for their truck drivers, and a 27% savings on inventory costs.