British Energy
British Energy is one of our clients in the United Kingdom.  Extensive use of nuclear fuels is much more common in Europe.  Inventory Management has become more critical in the past few years as many utilites are merged and reorganized.  Inventory management here is a much more typical "maintenance" inventory with two general kinds of operations - fast moving and slow moving.

The first (know as "transmission and Distribution") is characterized by smaller investment, but much higher "spend" each year.  Items in this category usually have shorter lead times and tend to be less costly to procure.  MMS handles these items with precise reporting which is usually focused on supplier.  This enables British Energy to report directly to each supplier a coming replenishment plan of purchases.  Files and electronic outputs make this exchange seamless and quite useful to these vendors.

The second (known as "generation") is characterized by longer lead times, extremely high capital investmant and much smaller yearly "spend".  These items last for years and are impossible for other software to forecast.  Not so for SMS!  The SMS "slow moving" logic incorporates number in service, failure statistics, and any past issues for the past five years into a calculation to set the proper number of "spares".  This feature is important since some parts are "slow moving".  Any error in setting spares levels can result in millions of unnecessary investment - or critical outages without the spare part being on the shelf.  Additionally, many "slow moving" items" have proven to actually be obsolete items over the years and should not be replenished at all.

The system also highlights over and under stocking through focused and iptimized EOQ and MIN values.  SMS reports enable us to target the most important problems in priority order.  The facility to convert these reports into Excel is extremely useful.

SMS is also particularly effective at handling fast moving inventory.

We have been using SMS since 2002 and it is an essential supplement to our mainframe maintenance system."

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