What Bevola did: Some time ago Bovola started looking into new ways of reducing inventory without compromising service levels and delivery time to customers. As a starting point Bevola’s purchaser, Søren Lundgreen, identified the company’s most important subcontractors. For each one of them he detected the components and products most important to Bevola (all AA products was defined by high profit and high frequency.)
Once equipped with such lists it was time to set up meetings with the selected subcontractors. Before entering conversations with the subcontractors Bevola analyzed the AA components and products needed from each one of them. Once a clear picture of the components’ nature and Bevola’s demands was made, subcontractors were offered these insights in return for shorter delivery times. As subcontractors was offered a better starting point for producing components and products they were able to plan their production year better – and Bevola gained the desired shortened delivery times.