Ole Lynggaard transforms their luxury jewellery supply chain with AGR

Ole Lynggaard is a distinguished Danish luxury jewellery brand headquartered in Hellerup, Denmark. The company employs approximately 40 goldsmiths and maintains comprehensive design, marketing, PR, logistics, and purchasing departments. Their operations include five retail stores in four countries and a network of more than 200 wholesale customers worldwide. To manage their growing supply chain challenges, Ole Lynggaard partnered with AGR, a leader in inventory management and demand forecasting solutions. AGR’s innovative systems improved inventory management, demand forecasting, and customer satisfaction. Looking ahead, Ole Lynggaard plans to expand its use of AGR’s system for further efficiency and growth.

The Challenges

Ole Lynggaard’s supply chain is characterized by the complexity of managing high-value inventory items across various channels, including retail stores, wholesale customers, and e-commerce. The main challenges include:

Inventory Management:

Maintaining optimal inventory levels for expensive goods without overstocking or understocking.

Demand Forecasting:

Predicting demand accurately amid fluctuating market conditions and seasonal sales peaks.

New Product Launches:

Coordinating inventory for two major product launches and the crucial Christmas season every year.

Manual Processes:

Reliance on Excel and gut feelings for forecasting, which was time-consuming and prone to errors.

The results

Since implementing AGR, Ole Lynggaard has realized several significant benefits.

More accurate reordering points and better management of inventory levels.

Reduced reliance on manual processes, saving time and reducing errors.

AGR’s automated forecasting capabilities provided more reliable data, aiding in better decision-making.

The system enabled better alignment of production and inventory with demand, particularly during peak seasons.

“Our retail stores' demand forecasting before AGR was based on feelings, and now we do it based on numbers.”

Need for AGR

Given the intricate supply chain and the high value of inventory, Ole Lynggaard needed a robust solution to streamline their inventory management and demand forecasting processes. The key requirements were:

– Automation: To replace manual Excel-based forecasting with an automated system.

– Accuracy: To improve the accuracy of demand forecasts and inventory reordering points.

– Integration: To seamlessly integrate with their existing ERP system and accommodate their specific operational needs.

Why AGR

AGR was selected for several reasons: – Familiar Interface: AGR’s visual and operational structure mirrored the existing Excel-based processes, making the transition easier for the team. – Automation of Reordering Points: AGR automated the calculation of reordering points, which was previously a manual and error-prone task. – Comprehensive Solution: AGR provided detailed ABC analysis and accurate forecasting, addressing both immediate and long-term needs.

Implementation Process

The implementation process coincided with an ERP system upgrade. Despite the resource-intensive nature of the ERP upgrade, Ole Lynggaard proceeded with integrating AGR to maintained momentum and ensured the purchase department could start leveraging the new system promptly. – Initial Setup: AGR was initially set up on the existing ERP system to allow the purchase department to become familiar with it. – ERP Integration: Post-ERP upgrade, AGR was fully integrated, providing a seamless transition and ensuring minimal disruption to operations. – Customization: AGR required minor adjustments to cater to the unique needs of Ole Lynggaard’s production and inventory processes. The partnership between Ole Lynggaard and AGR has been instrumental in transforming the company’s supply chain management. By automating and optimizing inventory and demand forecasting processes, AGR has helped Ole Lynggaard maintain its high standards of efficiency and customer satisfaction. As the company continues to grow and evolve, the ongoing collaboration with AGR will play a crucial role in sustaining their operational excellence and supporting future expansion.