Dény Security re-optimizes its stock management systems

Dény Security

Aim: optimize management of €1 million in stocks

In 2018, analytical accounting revealed to Dény Security’s Finance Department that its stock management systems were in need of perfecting.

More specifically, whereas €3 million out of a total gross stock valued at €4 million was being managed and monitored rigorously (with inventory staff implementing shared management rules), €1 million worth of stock was being held in a workshop area without any particular control. This represented a significant item on the balance sheet of a company whose total sales amounted to ca. €23 million.

The situation had two effects. On one hand, it impacted both the treasury position (suboptimal procurement) and total earnings, since the products in question were subject to slower turnover and would often depreciate in value. On the other hand, working conditions were also affected, with dormant stocks taking up an enormous amount of space.

Hence the priority for Dény Security to regain control over its stock management. The company gave itself a goal of creating lasting value and set out to reduce, within one year, the value of the stock stored in the workshop from €1 million to €200,000.

Two action levers: raise staff awareness; and better performance management

 

The first step towards this goal was to raise teams’ awareness of the problem. This has meant objectifying the financial loss, co-developing an action plan and setting up within the workshop certain dedicated storage spaces, replete with shower sprays.

The next step has been a new performance management system, involving the development of a shared monthly scorecard monitoring any efforts made; making the issue a regular item at management committee meetings; and distributing visuals to remind proximity managers and operatives of its importance.

Treasury optimization and considerable time savings


Inventory counts have also been reinforced. At present, the workshop holds about €500,000 in stock, half as much as in 2018. Operatives’ awareness has also been raised, with inventory operations now reduced by the equivalent of one working day.

A considerable amount of time is also being saved. There is no longer any need to review the same files month after month. The entire storage function has become a lot more reliable – not to mention that extra space has been freed up in the workshops.

Thanks to its policy of financial and industrial responsibility, Dény Security has generated lasting value for stakeholders including suppliers, customers and investors!