A versatile system ensures seamless inventory management
The inventory management system Pilvilampi implemented for Danfoss displays real-time stock levels and enables transparent management of goods.
The new system has made it possible to, among other things:
- Focus working hours on value-creating tasks
- Eliminate unnecessary and costly inventory checks
- Use storage efficiently and reduce waste
For a long time, Danfoss Drives – part of the globally operating Danfoss Group and a manufacturer of frequency converters – faced challenges in managing the product development department’s inventory, which includes various types of test equipment, for instance. The inventory had been managed using a mix of Excel spreadsheets and even handwritten logs. Although there was a clear need for a more suitable solution, none was readily available. The large-scale enterprise software used by the global organisation was not well-suited to the needs of a 150-person team.
The cumbersome inventory management led to, among other things, overtime spent on inventory tasks, as there was no certainty about the location of test equipment. Productive working hours were also wasted searching for items. In addition, a significant amount of obsolete stock was being stored unknowingly.
Danfoss gave Pilvilampi a tough nut to crack, and together with the client, we designed and implemented a system that enables the product development team to view the inventory status in real time and manage the movement of goods transparently. Equipment and other supplies can be reserved from the warehouse and requested to be transferred, for example, from a partner’s warehouse to the client’s own. From an employee’s perspective, the transfer happens automatically. The system always shows who is currently using a given item and when it is expected to become available. Importantly, the system also enables monitoring the utilisation rate of stored items, which in turn helps improve warehouse turnover.
Thorough deployment training as a key factor
Pilvilampi’s approach to implementing systems while giving the client a real-time view of progress throughout the project received praise from Danfoss. One of the key factors behind the successful, purpose-driven end result was that Danfoss was able to start testing the system with real data at a very early stage.
The new inventory management system has been well received, thanks in part to the thorough deployment training. Although the implementation focused on ease of use and a straightforward user logic, successful adoption was also supported by instructional videos and multiple joint walkthrough sessions.
The Danfoss inventory management system is an excellent example of how even a lightweight software implementation can deliver significant benefits.
I had to schedule weekend overtime just so we’d have a rough idea of what we have in the storage, what’s missing, and what we need to procure. When you think about bringing in engineers and M.Sc. engineers to work weekends – well, that’s cash, baby. So in terms of payback, what this system cost us is peanuts.
Jyri-Ville Pouttu, People Leader, Product Test, Danfoss Drives
A pioneer in energy-efficient technologies, Danfoss employs 42,000 people worldwide. Its Danfoss Drives unit is one of the world’s leading manufacturers of frequency converters. The product development and production unit for frequency converters, located in Vaasa, employs around 600 people. In Finland, the company has facilities also in Helsinki, Lappeenranta, Tampere and Vantaa.
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