All Inventory ABM tools are ground to give you a clear picture of your inventory: what, where and how much.
More than 15 000 SKUs in assortment Project objectives:
1. Automatization of order handling procedures, optimization of purchasing processes
2. Transition to a centralized inventory management system
3. Reduction of excess inventories and lost sales
4. Improvement of turnover indicators
Director of Information Technologies
90 stores, 50 000 types of products in assortment
Situation prior to project implementation:
• Correct data about product display was missing, there were more SKUs in a product mix than space in the shops, therefore managers were choosing independently which inventories to display
• Numerous factors, distorting stock volumes existed across stores (delays with receiving inventory, delays with inventory returns, thefts, losses etc)
• Orders were created by managers in each retail outlet
• High percentage of mistakes due to ‘’human factor’’
• Each manager was operating and ordering large quantities of SKUs, and hence choosing consequently to place orders less frequently and in bigger volumes
Head of Department Lean
1. Decentralized orders system (total involved 15 people in each of the stores)
2. Manual order of each item
3. The quality of the order is low
4. The physical place for the formation of orders is in the client's accounting system on the enterprise servers
5. Inability to manage inventory properly and analyze the reasons for the shortage and surplus goods
6. The deficit for one commodity item and the surplus stocks for other items
Head of sales
• 1540 gas stations and complexes are located in cities, villages, towns, on the highways.
Structure: 1540 gas stations and complexes are located in cities, villages, towns, on the highways.
1. Automated process of orders formation allowed to optimize staff. Only 2 persons in the entire network are engaged in orders process.
2. Implemented centralized inventory management system
3. Sales increased.
4. EDI accelerates the process of formation, sending and processing documents
5. Improved turnover achieved.
The head of the commercial department, "AVIAS"
AVD Trade sells products designated for commercial autos in its own retail store.
1. Streamlining internal business-processes starting from order placement up to product arrival
2. Reducing excess inventories and improving product assortment
3. Minimization of lost sales, improvement of turnover indicators
4. Optimization of purchase department activity
5. Releasing manager’s time for assortment management
88 stores, 17 000 unique SKUs, 2500 sq m Distribution Center, 24 000 buyers daily
1. Decrease excess inventories
2. Improvement of turnover indicators
3. High level of product availability in chain stores
VPROK and ABM Inventory:
• 7 persons work in ABM Inventory
• 100% of movements are managed within the system
• 87% of DC orders are created in the system
«Cosmetichka» is a retail network of stores that offers a variety of beauty, health and home products in the Republic of Belarus. Over the 14 years, the company has already opened 34 stores and provides its clients with 19 000 brands of decorative cosmetics, household chemicals and hygiene items.
The chain is represented by 12 stores in 7 Russian cities: 3 supermarkets in Yekaterinburg, 4 in Moscow and 1 in Samara, Chelyabinsk, Novosibirsk, Rostov-on-Don and Kazan.
Results: In the period between all goods were connected to the system and the beginning of the purchase of goods for the next year, the following indicators were improved:
• Centralized inventory management system ABM Inventory manages 97% of the entire range.
• Stocks decreased by 7,5%.
• Surplus decreased by almost 34%.
• The trend of continuous growth of stocks, which was observed since September 2016, was stopped.
CFO, "ZOLOTOIE YABLOKO"
• The process of creating orders has become fully automated.
The number of stores increased from 15 to 47 stores, while the number of employees participating in the formation of orders has not changed
• Lost sales decreased by 5%
• Turnover decreased by 36% (from 87 to 64 days)
• Sales increased by 56% (with average stocks not growing).
CEO, "BELOE SUKHOIE"
Before ABM Inventory system implementation Network consisted of
- 37 stores
- 1 Distribution center
The network sells more than 45,000 items of various categories of goods.
Novus currently Owes 42 stores.
1. Non-centralized inventory management system
2. Regular errors in orders related to the human factor
3. The absence of analysis of additional sales points and seasonal goods Surplus, missed sales
4. Obsolete Assortment Matrices
CEO, "Novus Ukraine"
1. The centralized inventory management system ABM Inventory, which manages about 46 thousand commodity items, has been implemented.
2. Sales increased by 8% in the primary connected stores group.
3. Improved turnover. For the primary connected stores group - by 10 days (30%). Throughout the network - for 8 days (25%).
4. Assessing the reliability of suppliers by tracking orders from the moment of forming them till it is credited was established.