About Us
History
The Inventory Pulse database tool has been developed over 15 years. Started with a MS excel programmed workbook version which was used with a number of contract clients sites.
Original Business Case:
Business agency with turnover of approx. NZ$15 M per annum. Importing and distributing confectionary.
Purchasing lead time from multiple factories in north Europe, south Europe, Asia and South America.
Shipping required refrigerated containers. Purchasing lead time twelve to sixteen weeks.
Between one to eight containers per week. Product shelf life nine or twelve months.
Problem, carrying stock too high. Stock turns were 6-7 per annum.
Solution:
Build a MRI based planning tool to calculate forecasted stock demand and hence a comprehensive purchasing plan.
Ideally weekly demand out 26 weeks.
Main contributing factors to achieve result are as follows:
- Seasonally based forecast based on historical sales patterns.
- Calculated safety stock to account for long lead times.
- Calculated EOQ (Economic order quantity)
- Known outstanding orders and in transit shipments.
Result:
After 3 years, stock level in warehouse reduced to 17 to 17 days inventory. Very little out of stock especially for A products. Stock turns increased to 22 per annum. With corresponding increase in ROI (return on investment).