Challenge
The challenge set by Ormazabal, aimed specifically at the Primary Distribution Division, is entitled: “How could Ormazabal transform its current inventory management to move from a static, manual model towards a dynamic, predictive and automated system?”
This challenge addresses the needs described below:
- How could the obsolescence of inventoried assets be minimised and the resilience of the supply chain increased?
- How could inventory tied-up capital be reduced, thereby also reducing storage and financial costs?
- What is the actual safety stock required to meet manufacturing needs for the coming weeks?
Ormazabal is a global company specialising in customised, high-tech electrical solutions, with over 55 years of experience. Our solutions are designed to facilitate the digitalisation of the electricity grid to integrate greater renewable energy generation, enable more sustainable mobility and guarantee supply to buildings and infrastructure with critical energy needs.
In this case, the Smart Stock Challenge will focus specifically on one of the businesses within the Primary Distribution Division. Within this division, there are four production units: epoxy insulation component manufacturing, silicone connectors, automation using high-vacuum technologies and substation manufacturing. Given the volume of business and level of complexity, it is proposed to carry out the pilot in the epoxy insulation component manufacturing unit.
Stock management currently relies on traditional processes and rules which, while ensuring production continuity, have limitations when it comes to adapting to an increasingly dynamic and uncertain environment. Fluctuating demand, lead times, reliance on critical suppliers and the need to maintain high service levels require operating with high inventory levels, resulting in significant tied-up capital and risks associated with obsolescence and a lack of accurate visibility of stock levels.
Furthermore, decision making in relation to procurement and stock planning is often reactive, relying on historical data and the experience of teams, with limited capacity to anticipate deviations, stockouts or excess stock. This hinders the early identification of risks and the adoption of preventive measures that simultaneously optimise costs and service levels.
Despite the efforts made in recent years to establish working methodologies, significant changes in demand, coupled with supplier delivery issues, generate a volume of data that the team cannot manage effectively. This situation frequently leads to miscalculations that can have a serious impact on the business.
Amid market volatility, pressure on margins and the need for more resilient supply chains, Ormazabal considers it a priority to move towards a smarter, predictive and data-driven inventory management model. A model that improves stock visibility, anticipates risks, supports decision making and dynamically balances inventory levels with actual business needs, while integrating with existing systems and processes.
This challenge therefore forms part of Ormazabal’s strategy to drive applied innovation and the digitalisation of its operations, exploring solutions that deliver real value, are scalable and contribute to more efficient, flexible stock management aligned with the company’s strategic objectives.
Terms and conditions (PDF)
Description of the Challenge (PDF)
Registration for the information sesión