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Infographic: Taking the Pressure Off of Wholesale Distribution

17 Nov 2020

Facing narrower margins and higher complexity? Product and spare part portfolios from OEMs expand year after year, while customer expectations continue to rise. Get out ahead of the competition with better demand forecasting to enable you to carry less inventory while raising service levels.

 

 

Wholesale distributors are squeezed between manufacturers and their customers; facing increased competitive threats, escalating SKU counts and expanding ecommerce. Here’s how wholesalers powered by ToolsGroup’s service-driven supply chain planning are ready for anything tomorrow may bring.

Gruppo Giovannini SpA, a wholesale distributor of electrical spare parts, wanted to implement an S&OP process to better manage its expanding inventory replete with slow moving items.

Results:

  • The company stayed profitable even when revenue decreased by 20%
  • More than doubled the number of Electro Self retail stores (from 8 to 19)
  • Increased the product line by 30%, 70% of which are ‘long tail’ items

 

“Gruppo Giovannini’s strong business performance since the start of the millennium is a direct result of continuing to invest wisely in its systems, processes and people, even when times were tough. ToolsGroup has helped us stay resilient through this journey and prepares us for whatever the future may hold.”

– Supply Chain Manager, Gruppo Giovannini

 

Lubinski, founded in 1936, is Israel’s sole importer of Peugeot and Citroen vehicles and spare parts. It is one of the country’s leading privately-held family businesses.

Results:

  • Reduced inventory by 20-30% without compromising their 96-97% service levels (well above industry benchmark)
  • Rush air shipments slashed by a third
  • Saved €1.5 million in inventory in the first year
  • Significantly raised planning productivity (from two full-time planners to one part-time planner)

 

“My only regret now is not upgrading sooner! I’m immensely proud to be passing on a highly efficient, productive spare parts operation that provides exceptional service and is ready for the future.”

– Shalom Asayag, Service and Aftermarket Director, Lubinski

 

Pompea SpA, a leading manufacturer of hosiery and underwear products, provides its products through retail outlets, wholesalers, sales agents, retailers and mobile shops in Europe and internationally.

Results:

  • Service time cut by well over half
  • Service level increased by 10 full points
  • Inventory reduced by 15%

 

“We improved the process, timing and reliability of our forecasts with a structured procedure enabled by ToolsGroup. The results have gone beyond our expectations.”

– Pompea stakeholder

 

Rajapack SpA distributes more than 4,000 packaging products to 70,000 customers, while maintaining exceptional service levels and a turnover of €17.7 million in 2017.

Results:

  • Greater service level stability: increase of 0.4% to 98.92%
  • Reduction in stock-outs for seasonal products
  • 75% planner productivity improvement
  • Reduction in days of inventory outstanding from 76 to 69

 

“The results we’ve achieved with ToolsGroup have made Rajapack Italia a benchmark for the group’s subsidiaries in replenishment management.”

– Lorenza Zanardi, General Manager, Rajapack Italy

 

Be Ready for Anything

ToolsGroup is how wholesale distributors achieve their target service levels while optimizing inventory–no matter how complex their supply chain is or how much demand changes. That way, they can be ready for anything.

Our wholesale customers commonly achieve:

10-30% reduction in inventory
96% or better product availability
50-90% reduction in planner workload

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