Starting Point
Pektik stores controlled orders and stocks independently and there was no clear overall idea how many items were sold in each store unit. As an unfortunate result, Pektik stores had problems with product availability and at the same time some of the stores had overcapacity. Store managers also used extra time to order a wide range of products and check balances.
Problem Solving
As Pentik started using Logisticar operating model, a new product policy was created for each store, according to e.g. store size. Using ABC-logic they were able to determine which items were important. ABC-logic was then utilized in everyday work. Results started showing quickly and now stores have correct item policy, created by demand.
With the help of better item range and automated orders Pentik has been able to enhance inventory turn, service level and lowered the inventory value. Products no longer sit in warehouses, but are directed to those stores that have higher demand. This also helps the stores to get rid of items that are no longer in selection and direct them to outlet-stores. Logisticar program also calculates automated purchase suggestions for each store which in turn helps stores to lower the amount of work and gives a better idea of selection, inventory and sales.
During two years store inventory values went down 1,5 million euros, purchase lots decreased by 30% and service level went up from 93% to 98,5%.
