How Arjas Steel cleared 90+ Lakhs of excess inventory in a single quarter.

A premier Indian Special Bar Quality steel manufacturer needed to optimize multi-crore MRO inventory across 12+ stores without ripping out SAP. Planytics delivered, in 90 days.

The client

Arjas Steel is a premier Indian manufacturer of Special Bar Quality (SBQ) steel, serving core sectors including automotive, energy, defense, and railways. Their flagship facility houses over 12 maintenance stores, each stocked with critical MRO (Maintenance, Repair and Operating) supplies essential for sustaining machine uptime and operational efficiency.

The challenge

Arjas had been managing their MRO workflow primarily through SAP ERP. With multi-crore inventory spread across various locations within the factory, management recognized a critical need to drive inventory optimization across the entire network.

They needed to transition from a traditional, static "just-in-case" inventory approach to a responsive, data-driven strategy. The constraint was clear: no rip and replace. SAP would stay.

The solution

Arjas partnered with Planytics, a system-agnostic supply chain intelligence platform designed to enhance inventory performance.

• Seamless integration: Planytics was integrated with the client's existing SAP infrastructure with no disruption to operations.
• Dynamic replenishment: Planytics shifted Arjas to dynamic re-order levels (ROL) by evaluating historical consumption trends, supply and lead-time variability, and minimum order quantities.
• Intelligent recalibration: The platform recalculates optimal maximum quantities and buffer levels twice a week, aligning inventory with real-time supply and demand dynamics.

The impact

The client has reported exceptionally high satisfaction with Planytics. The implementation has driven immediate and tangible financial benefits.

The numbers in detail

• Excess inventory reduction: Arjas successfully reduced over 90 Lakhs in excess inventory by value within the first quarter of deployment.
• Aggressive 1st-year target: Building on early momentum, Arjas is targeting a 25% decrease in overall inventory value within the first year, aiming to optimize a baseline of 82 Crores down by a full quarter.
• Improved machine uptime: By optimizing stock levels and ensuring the availability of the right inventory, the system supports a target of 100% machine service levels.

What comes next

Given the rapid ROI (Return on Investment) and how much the team has adopted Planytics for daily operations, Arjas is already structuring plans to extend the platform's rollout to their second plant in Chandigarh.

Key takeaways

• Data-driven agility: Shifting from a static replenishment strategy to dynamic, system-agnostic re-order levels minimizes overstock while safeguarding against stockouts.
• Substantial financial ROI: The platform facilitated a rapid reduction of 90+ Lakhs in excess inventory, driving toward a strategic goal of cutting the 82 Crore baseline inventory by 25%.
• Uncompromised operations: Financial optimization was achieved alongside a target of 100% machine service levels by ensuring the right parts were always available.
• Scalable success: Seamless SAP integration and high user adoption at the flagship site have built the business case for a multi-plant rollout.