The Challenge
More reliable stock forecasting
Need to reduce stock holding
Maintain service levels with less stock
Too many backorders
Integration with Dynamics NAV
The result
- Inventory levels lowered by 15%
- Introduction of new product lines
- 50% reduction in resource requirement
- Increased service levels
- More efficient purchasing clerks
- Stock turns dramatically increased
- ROI in 6 months
“AGR has helped us reduce our stock holding by 15% as well as saving us 50% resource requirements. At the same time we have added new product lines and maintained the very high service levels our customers have come to expect – a great result.”
- Newitts
- Ian Wilson, IT manager, Newitts
To ensure continued high service standards, while significantly reducing stock holding, Newitts needed to be able to make realistic purchasing decisions, quickly, cost-effectively and with minimal impact on the smooth running of the business. “In the past we had to download data into a spreadsheet as our ERP system, Microsoft Dynamics NAV, restricted us to using min/max stocking rules. This meant we were spending far too much time creating back orders, making us much more reactive than proactive. We wanted to forecast smarter so that we had the right stock available without having stock we didn’t need”, explains Ian Wilson.
AGR’s approach is to focus exclusively on delivering accurate forecasting that results in less cash being tied up in stock holding and a more flexible yet comprehensive approach to customer service. Newitt’s was very impressed with AGR’s understanding of the company’s business model and made the decision to install the software. Newitts is an excellent example of the immediate and positive effect AGR can have on a company’s bottom line profitability. The software has been developed by some of the world’s finest mathematicians and it has been proven to work time and again in a huge variety of retail and distribution organisations.
AGR’s intuitive graphical interface allows Newitt’s purchasing staff to gain much greater insight from historical sales data and translate this into more accurate and effective sales forecasts. In the past they had to download the data into a Microsoft Excel spreadsheet, which was both time-consuming and difficult to handle. At a glance, they now see a clear and accurate overview of the current stock position, allowing them more time to manage inventory and less time wasted checking and matching incorrect data. This has resulted in a 15% reduction in stock, a 50% reduction in resource requirement, a return on investment within 6 months and a platform that will ensure a more efficient, productive and profitable business long into the future.