Case Study

Challenge

With the need to replenish parts throughout Australia and additionally supporting New Zealand as a secondary backup when parts are needed quickly, it was imperative that a strong forecasting system was put into place that could suit the company’s specific needs. With an industry that replenished stock based on client demand, there are no sales targets put into place, with about 50-60% of inventory being slow moving to obsolete due to volumes and other factors.

Solution

After the introduction of DMS systems, operations were smoothed. The need to maintain systems was removed, with the systems now supplying automatic data updates to the company.

When the company switched to Demand Solutions, the organisation held inventory of around $17 million, which has now been reduced to $10.5 million worth of stock. Inventory controlled Russ Dixon believes that with the continuation of Demand Solutions systems, the company will reach their goal of housing $6 million worth of inventory within 12 months.