Case study: Inventory monitoring – analysis and optimisation of raw material stocks (in-house manufactured parts, purchased parts), semi-finished products and spare parts

Our client, an international industrial company, faced the challenge of efficiently managing its materials and inventory across multiple European locations.

The existing systems did not provide a central overview of inventory levels, coverage and requirements. This meant that there was no reliable basis for scheduling and replenishment planning, while high capital commitment and unclear inventory distribution limited flexibility.

The goal was to establish a uniform, digital inventory monitoring system to create transparency across all plants.
The solution had to be usable across locations, offer automated updates and establish a uniform key figure logic (range of coverage, inventory turns, inventory values) to enable data-based decisions in purchasing and production.

Data analysis and preparation:

At the start of the project, a comprehensive analysis of inventory and movement data was carried out.
Material master data, booking histories and demand figures were cleaned up, validated and standardised.
Based on this data, an ABC-XYZ analysis was performed, which classified materials according to consumption frequency and value share.
This made it possible to identify inventory risks and derive initial measures to reduce excess stock.

Automation of evaluation and reporting structure:

In the next phase, the manual analysis process was gradually automated.
Initially, the evaluation was carried out in Excel tools, later transferring to SQL-based data processing. Subsequently, the entire data pipeline was integrated into Power BI, creating a dynamic, automated dashboard.
This visualises key figures such as stock value, coverage, turnover rate and inventory trends in real time and provides weekly updates.

Process harmonisation and communication:

Parallel to the technical implementation, a uniform communication structure was established between the locations.
Regular coordination between scheduling, purchasing and supply chain management ensured that critical materials were evaluated jointly and decisions were made based on the same data.
A standardised range logic defined target and maximum stock levels, enabling consistent planning across all plants.

Integration into the SAP system:

An SAP-based interface was developed to connect the operational systems, transferring inventory and transaction data directly to the Power BI environment. A custom report (‘YMM_MD04 Reporting’) was implemented in a pilot plant, which automatically exports material data to a staging table. This solution laid the foundation for the complete digitalisation of inventory evaluation – with minimal maintenance and high scalability for future rollouts.

Results and benefits:

The introduction of cross-location inventory monitoring has resulted in significantly greater transparency across more than 30,000 material numbers.
Automated data updates have replaced time-consuming manual reports, and inventory management decisions are now based on current, validated data.

The standardisation of range logic has enabled the targeted identification of excess stock.
In the pilot plants, the average stock range was reduced by over 15%, while at the same time improving material availability.

The new system creates a reliable data basis for scheduling and planning.
It combines transparency, speed and accuracy and represents an important step towards digital, integrated inventory management.
Thanks to its modular structure, monitoring can be extended to other locations and product groups in the future.