Two weeks of looking
Building products distributor, Rotterdam
Half the stock was the wrong stock
-24%
-24%
working capital in stock, twelve months on
working capital in stock, twelve months on
97.1%
97.1%
service level, from 91.4%
service level, from 91.4%
Sector
Building products
Building products
Size
€310M revenue, six depots
€310M revenue, six depots
Service
Inventory and planning
Inventory and planning
Year
2025
2025
Where it started
Where it started
Service levels were 91 percent and falling, and stock was at a record high at the same time. The planning system said one thing, the depots said another, and nobody had counted for three years.
Service levels were 91 percent and falling, and stock was at a record high at the same time. The planning system said one thing, the depots said another, and nobody had counted for three years.
What we did
What we did
Two weeks of counting, then a demand segmentation of every line by how predictable it actually was. Reorder points were rebuilt from the numbers rather than from habit, and one planner in each depot was trained to keep the model running.
Two weeks of counting, then a demand segmentation of every line by how predictable it actually was. Reorder points were rebuilt from the numbers rather than from habit, and one planner in each depot was trained to keep the model running.
What came out of it
What came out of it
Stock on hand fell by 36 percent over twelve months while the service level rose to 97.1 percent. The working capital released paid for the engagement eleven times over.
Stock on hand fell by 36 percent over twelve months while the service level rose to 97.1 percent. The working capital released paid for the engagement eleven times over.
We had been told for years that stock and service were a trade-off. It turned out neither number was being managed.
We had been told for years that stock and service were a trade-off. It turned out neither number was being managed.
Chief financial officer
Chief financial officer