Case study - Inventory management

Development of an inventory management and sales controlling system for a Hungarian tool wholesaler

DESCRIPTION OF THE CLIENT AND THE PROBLEM:

  • The client is a 1 mrdFt with an annual turnover of tool wholesaler.
  • Due to the rapidly changing economic situation and the associated changes in demand has increased the level of inventory needed for operations. This due to rising financing costs has affected profitability and cash generation.
  • The aim was to optimise stock levels and to transform the assortment on a data-driven basis. In addition, the sales sales The management also planned to link the sales bonus system to efficient stock utilisation.

OUR APPROACH:

  • After analysing historical turnover and current stock levels we have prepared an excel based predictive model, which taking into account expected consumption and delivery time purchase and and stock clearance recommendations.
  • To analyse the product mix, we focused on turnover data and the substitution effects of products. We made recommendations for product launches, pricing changes and the addition of new product categories.

RESULTS:

  • The stock level decreased by an average of 25 mFt, which represents a reduction of about 15% of the total stock value.
  • Creating a more efficient product assortment that both increases customer satisfaction and makes inventory management more efficient
  • Reduce stock shortages by 20%.
  • Create an integrated and user-friendly dashboardthat is easy to use for management, procurement and sales management and purchasing with clear recommendations to manage stock levels as efficiently as possible.