With over 300,000 SKUs and an extensive network of suppliers and customers, visibility is essential. That’s what Inact Now has done, and they’ve managed to reduce inventory by 9% by focusing on loss-making items.
Case: Convena Distribution A/S
Strong focus on KPIs ensures a healthy bottom line
“Our revenue has increased by 19%. And we can see that the focused work with KPIs makes people much more motivated”
– Interview with owner of Convena Distribution A/S, Peter Garber
Increased complexity and growth required systematization and automation
For Convena, an internationally recognized IT supplier, overview and systematization are essential for profitable growth. With over 300,000 part numbers, and a ramified network of customers and suppliers, a delivery time of less than 24 hours across Europe can sometimes be a challenge.
Why did you decide to invest in Inact?
Well, because we greatly expanded our product range and acquired a company, we added a lot of SKUs. This development required a higher degree of systematization and structure, and we needed some tools to help us with that. So, the increased complexity was one of the primary factors.
In addition, we wanted to be able to see how our key figures and KPIs developed over time. Before we started Inact Now, it was a lot of manual work to get an overview of how each item number performed based on the Excel sheets we had. Today, it would have been close to an impossible task.
Overview with focused goals
How have you managed to create an overview?
For example, we have set some focused goals for our Product Managers based on some KPIs that we have automated and now monitor in Inact Now. Specifically, we measure the product area’s earnings in relation to budget, turnover rate, and stock availability.
However, we only measure certain ABC categories. It wouldn’t make sense to measure stock availability on dead items. Instead, we focus on the entire A-column and B-column in our ABC matrix, where we have set specific targets for each ABC category.
And that’s where we can now feel the benefit of working with Inact Now. Our Product Managers are no longer confused by the many new products that are being added. The platform has become a base for them to work from. This saves us a lot of resources and time.
"It saves us a lot of resources and time"
Automation and execution drive results
At Convena, we see the good work on the bottom line. The Product Managers are reaching their goals, and we’ve managed to increase revenue by 8% while lowering inventory value by 9%.
So, the turnover rate is one of the things we really look at as well. And it has had a positive development and has increased by 19%. We can see that the focused work with KPIs and the structure that Inact Now provides makes people much more motivated.
All the way with Inact consultants
When we expressed where we wanted to go in the process, the consultants at Inact were good at picking up the ball and being on the sidelines as a sparring partner. In this way, we have never been on our own. And I think they have managed to understand the complexity of our business and understand who we are and what we need.
In addition, the Inact consultants have continuously reached out to each of our Product Managers and talked to them about how they can do better. In this way, they have helped them on their way to achieving their monthly KPIs. So our Product Managers have always been taken by the hand. And it hasn’t been at our behest.
Results
9% reduction in inventory value
+19% turnover rate
Convena has set focused goals for their Product Managers based on KPIs that they monitor in Inact Now. Their focused work has enabled them to increase their turnover rate by 19%.
Dialogue in management
At the management level, Inact Now is used to look at their inventory. They look specifically at when an item was purchased, whether it is an AA item or a CC, etc. In this way, they use ABC codes as a supplement to management dialog.
Convena Distribution A/S
Convena Distribution A/S was an international IT distributor with more than 300,000 different products and a large international network of suppliers. Convena Distribution A/S represented customers and suppliers in more than 75 countries and had established offices in Denmark (head office), England, France, the Netherlands, and Sweden.
NB: Convena was acquired by ETT Group in May 2023
