Case: Widex
Widex masters the golden balance between service and inventory levels
“It has become easier to manage our inventory and raise our level of service at the same time”
– Interview with Project Manager at Widex, Stine Skulstad
Highlights
The challenge
Widex was operating with a procurement function that lacked direction. Decisions were often made case by case, and the default solution was too often to buy more to create a sense of control. It provided short-term reassurance — but not necessarily a healthier inventory.
The solution
With Inact, the company automated its procurement analyses and built a shared rule set around an ABC matrix. This made it clear which items should be handled differently — and gave buyers a more consistent and deliberate way of making decisions.
The result
The company reduced inventory value tied up in CC items and dead stock by DKK 6 million, while delivery reliability increased from 50% to 90%. This led to both stronger results and a more efficient day-to-day operation in procurement.
The mindset was “better too much than too little”
At Widex, the ambition was clear: the business was set to double within five years.
The strategy was called Wave and was built around three focus areas: innovation, growth, and profitability.
But having the ambition is one thing. Executing on it in day-to-day operations is another.
The biggest challenge in execution showed up in procurement. Here, something critical was missing: a clear direction for how decisions should be made.
There were enough systems. Enough data.
But the company lacked a shared approach to what to do, when — and why.
As a result, too many decisions were made somewhat randomly.
“As a precaution,” safety stock was increased.
“As a precaution,” buyers ordered a bit extra.
It created short-term stability.
But not necessarily a better business.
"For example, if there were delivery problems with electronics, the procedure was to increase the safety stock. It’s better to have too much than too less. Today, we focus on having the right things in stock."
Stine Skulstad
Project Manager
With Inact, they started to gain the overview they had been missing.
Not more systems.
Not more manual assessments.
But a more consistent way of managing procurement and inventory.
That shift was exactly what the company needed.
Agreement and common governance principles
Procurement analyses were automated, and instead of treating all items the same, a shared rule set was built around an ABC matrix.
The rule set became a concrete governance principle for handling different items differently. It also made it possible to define clear actions for each ABC category.
This made a significant difference.
Because when items were no longer treated as equally important, it became easier to decide:
- how frequently they should be supplied
- where negotiations should be prioritized
- which items required the most attention
- And where it actually made sense to spend time and effort
It didn’t just create better overview.
It made decisions more consistent and less random.
And that showed in the results.
Inventory reduction of 1 million DKK per month
The work directly supported the profitability element of the company’s Wave strategy. Inventory became easier to manage. Delivery reliability improved. And at the same time, inventory value was significantly reduced.
"On our CC items and dead stock, we have reduced the inventory value by DKK 6 million since January. Since we started in January, we have also seen an increase in delivery reliability from 50% to 90% . I believe this is due to our increased focus on this area."
Stine Skulstad
Project Manager
But the impact wasn’t just about inventory and service levels.
The new approach also made everyday work more efficient for the buyers themselves.
When decisions no longer had to be built from scratch every time, it freed up both time and energy. When the rules are clear, it becomes easier to act consistently — even in a busy environment.
It increased motivation within the team and made the work more focused.
Because the real transformation wasn’t just reducing inventory.
It was moving from “better too much than too little” to knowing exactly what should be in stock — and why.
About Widex
Widex is a family-owned company founded in Denmark in 1956. Today, it is one of the world’s largest manufacturers of hearing aids. Widex hearing aids are sold in more than 100 countries around the world, and the company employs over 4,000 people worldwide.
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