Inventory Optimization for Industrial Distributors
Bridging the gap
The world is getting smaller. The Far East now dominates the supply scene, bringing with it the challenge of predicting future good needs up to six months in advance. Add to that the restrictions of minimum order quantities and the constraints of containers, Trade Merchants perform a delicate inventory balancing act on a day-to-day basis.
End users are now more demanding than ever, looking for the one-stop-shop solution, and if you don’t hold the stock, someone else will. New products have to be accounted for and good stock management is critical if Trade Merchants want to avoid getting stuck with obsolete stock. This requirement to hold broader product portfolios with shorter life cycles means Trade Merchants must also become the masters of promotions, pushing ‘older’ products or products with excess out of the door.
Taking the care of business
Understanding your needs
At Barloworld Optimus we understand the need for effective processes to ensure that demand is managed and that optimal orders are placed week-in and week-out. While Trade Merchants can easily collect accurate inventory data, without the right tools, successful manipulation of that data to create good forecasting information is a challenge. All too often, pressure is unfairly placed on Trade Merchants inventory planners to perform magic with that data, but with our help you can analyse and properly present this readily-available raw data, and transform simple replacement of inventory into forward planning, strategic modelling, visibility and control.
Delivering for our customers
As the UK's largest supplier of industrial goods and services of its type, WYKO came to Barloworld Optimus looking to reduce stock in its national distribution centres and improve service to its branches.
“In order to ensure the highest level of service to our customers, traditionally WYKO has maintained a very sizeable inventory. We found that the cost implications of such stock holding was constricting the company’s ability to grow and approached Barloworld Optimus to provide us with the means to significantly reduce stock while maintaining service levels,” comments Alan Whetstone, Commercial Director at WYKO.
“Barloworld Optimus’ inventory management software, Optimiza, together with an improved methodology for inventory management has allowed WYKO to grow our business without any significant increase in stock.”