YUKO

The Yukoil manufacturing plant was established in southeastern Ukraine in 2002 and is one of the most advanced production facilities in the industry across Eastern Europe. Yukoil specializes in high-quality automotive and industrial oils, greases, lubricating and cooling fluids, forming liquids, and service products that meet international quality standards.

10,000 sq. m.

Production area

250 product types

Lubricants under the YUKO brand

20 countries

Export geography coverage

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Project Requirements

Ensure a constant availability of necessary products to meet incoming demand.

Standardize, visualize, and automate production planning and inventory management across the supply chain.

Project Implementation

When selecting an inventory management solution for production, the company’s management visited KORMOTECH to see firsthand how Intuiflow was implemented and operating. The visit included a production site tour and a meeting with the head of planning. At that time, KORMOTECH had been using the planning solution for over 2.5 years and was able to share the impact and benefits of its application.

The project scope covered the management of all active buffered and make-to-order SKUs, totaling over 3,500 SKUs of finished goods, semi-finished products, raw materials, and packaging.

Project Launch Preparation

To kickstart the project, a thorough analysis of the company's current processes was conducted. This included identifying available data in the client’s inventory system, determining which data needed to be updated, and outlining new data management requirements. The planning, production, and order processing workflows were analyzed. During this phase, it was discovered that the supply process for production had not been formalized. Support was provided in establishing an ordering process, and the SP Yukoil project team worked together to develop a detailed technical specification. As a result, file exchange processes were set up, and within the first phase, all project team members received training on the Demand Driven MRP concept.

Project Implementation – Phase 2: Managing Production and Supply Orders

In the initial stages, ABM Cloud consultants assisted managers in working with orders, verifying each line item recommended by Intuiflow. This process helped strengthen the managers' skills in using the software and identify any remaining errors transferred from the accounting system. The primary goal of Phase 2 was to build trust among employees in the software.

During this phase, two on-site training sessions were conducted for users of the inventory management system, along with video tutorials covering each program module.

Ongoing Support and Employee Training for Independent System Use

At the same time, system parameters were fine-tuned, and recommendation meetings were held to improve inventory turnover. Throughout the entire project, the ABM Cloud implementation team provided methodological and technical support to system users.

As part of Phase 3, employees received training on analytics and software settings, ensuring they could independently manage the system’s full functionality and apply Demand Driven MRP principles in daily operations.

Results of INTUIFLOW

The company has implemented an automated production inventory management system, covering 100% of all active SKUs. Between June 2019 and March 2020, the following results were achieved:

60 %

Finish Products’ Overstock Reduction

40 %

Packaging Materials Overstock Reduction

8 %

Inventory Level Reduction

13 %

Sales Growth Simultaneously

Qualitative Improvements

Formalized the supply ordering process
Automated purchase and production orders, making inventory management fully transparent
Implemented dynamic buffer adjustments during PAF (seasonality factors)