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Nashua increases sales with improved availability
Nashua is a leading supplier of Office Automation Systems (printers, faxes and copiers)
for brands such as Ricoh. They came to JustEnough looking for a way to get away
from Excel spreadsheets in their demand planning and to reduce their $11 million
in excess inventory.
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- $13 million in stock was being held, with spare parts accounting for $1 million
of that
- Current stock represented anywhere from two to ten months of demand and Nashua was
writing off over $1 million in redundant stock annually
- Sought to achieve targeted customer service levels of 90%
- Purchase orders were manually generated, making it difficult to analyze data
- Stock was managed on a monthly basis and the replenishment report took over three
days to draw up manually
- Automate the demand forecasting to replenishment process
- Improve availability to increase sale
- Analyze stock levels more frequently to improve reaction times
- Automatically report exceptions to enable proactive replenishment and increases
productivity by removing previously labor-intensive activities
- Within weeks of implementation stock availability increased from 70% to 90% and
within five months stock availability was averaging 95%
- Accurate demand and inventory planning contributed to a 50% increase in sales in
the financial year
- A monthly forecast replenishment report that previously took a team three days to
complete is now run daily
- Stock levels are analyzed daily as opposed to monthly, improving reaction times
- Redundant items are now flagged, dramatically reducing room for human error
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