In this case you will meet Søren Sjøstrøm Hansen, Head of Operations at Hans Følsgaard, who has global responsibility for internal sales support, inventory, purchasing, logistics and master data. The company, which provides innovative technical solutions and products for the manufacturing industry and infrastructure, was founded in 1922 and has always been synonymous with quality, reliability and integrity.

As Head of Operations, Søren’s primary mission is to develop the company’s processes and influence the culture and people to continuously think profitability and thus optimize the use of resources and costs without jeopardizing their relationships.

The group owner demanded answers and action
When we met Hans Følsgaard, the company faced a critical challenge: an overwhelming DKK 118 million tied up in inventory. Maintaining a large inventory had become a competitive advantage for ensuring rapid delivery, but the effects of the COVID-19 pandemic, coupled with sourcing and transportation disruptions, put significant pressure on the business.

And because a large private equity fund owns Hans Følsgaard, the board knocked on the door and demanded an explanation and a clear plan to reduce capital tied up in inventory.

A quick fix wasn’t an option. It became evident to Søren that addressing the inventory problem required a long-term strategy. His challenge was now to convince the board to invest in this approach:

“There are different rules when you are part of a large group like AddTech. We must justify every financial commitment continuously,” Søren explained.

And because the problem called for a strategic change in thinking, Søren wasn’t looking for just another piece of software but a real sparring partner and a method to drive a long-term transformation. The kind of transformation that is 20% about technology and 80% about people.

The great frustration
In the years following the pandemic, Hans Følsgaard, like many global companies, felt the strain on its supply chain. Rapid market shifts demanded swift reactions, but the company struggled to keep up.

“It was incredibly frustrating not being able to react proactively,” says Søren Sjøstrøm, Head of Operations at Hans Følsgaard. “We constantly felt behind the curve.”

However, Søren’s frustration stemmed from more than just working capital being tied up. It pointed to a deeper issue: a company culture deeply rooted in tradition and well-established workflows shaped by a 100-year legacy.

“Changing the mindset is like turning a supertanker – it takes time, and sometimes it feels like one step forward and three steps back,” he reflects.

From software to strategy
The partnership with Inact marked the beginning of a transformation far beyond software and technology. “The system is secondary,” emphasizes Søren, noting that systems are only as effective as the people who use them.

“It’s about processes and people. Inact gave us the methods and tools, becoming a true partner in driving real change.”

When Søren stepped into his role as Head of Operations, he quickly dismissed the idea of simply imposing a new system as a quick fix.

Instead, he focused on changing employee behavior. “When I joined, we shifted the emphasis from systems engineering to people and behavior. That’s what made the difference,” Søren explains.

Søren says that one of the greatest strengths of Inact Now is the intuitive and simple design that immediately clicks with employees, making the change process far smoother. This makes everyday life easier for both employees and himself: “A thousand numbers are not sexy,” Søren elaborates. “But a green or red arrow up or down? That gives people a clear sense of purpose and drives action.”

“I don’t care about the technology itself, but that people can use it,” he adds.

The system’s notifications, which instantly let people know when something needs attention, quickly became known as “the inventory snitch”. Employees still praise these notifications as one of Inact Now’s best features. This straightforward, yet powerful approach was critical for engaging employees, especially in a long-established company. As Søren points out,“For any change to succeed, employees need to understand the logic behind it – especially in a company with deep-rooted traditions.”

A paradigm shift and a satisfied board
“It was better than we dared hope for,” was the board’s reaction 12-14 months into Hans Følsgaard’s transformation. This statement highlights not only the impressive results but also the paradigm shift that the company has achieved with Inact as a long-term partner.

Søren was always confident the transformation would drive significant results to the bottom line, though not everyone initially shared his optimism. “They didn’t believe me when I said we could improve the bottom line by two percentage points simply by getting our processes and behavior under control over 2-3 years,” he recalls. However, that initial skepticism is fading, and the results speak for themselves:

“This isn’t just an operational project: it’s a strategic shift,” Søren explains, noting that true culture change takes time and patience, and it’s crucial to engage management from the beginning fully. “Management must be fully committed and willing to take a few steps back before moving forward. Fortunately, our team has been fantastic to work with.”

Partnering with Inact has made complex data accessible and understandable across the organization, improving decision-making and fostering a culture of data-driven accountability and profitability. This shift has required an intense focus on data integrity, ensuring decisions are based on accurate insights.

Then, of course, there are the measurable results:

• Inventory reduced from DKK 118 million to DKK 88 million
• Increased transparency and shared understanding between purchasing and sales, leading to better overall management
• Potential to further improve the bottom line by two percentage points through process optimization

The transformation has proven that aligning processes, behavior, and data can drive both cultural and financial success.

What does the future hold?
Just like building a house, having a solid foundation is essential. Now that Hans Følsgaard has laid this groundwork, the company is ready to explore more advanced analytics and optimization across its operations. “We’ve only scratched the surface,” Søren says with enthusiasm. “This is just the beginning of our journey.”

Fortunately, both the board and Hans Følsgaard’s management understand that true, sustainable transformation takes time. With their continued support and Inact as a trusted partner, the company is ready for the future, aiming for an even more streamlined and controlled supply chain.

Here are five key lessons every supply chain manager can learn from Hans Følsgaard’s transformation:

1. Technology is a tool, not a solution in itself
2. Cultural change is the key to long-term success
3. Leadership commitment is vital for transformative projects
4. User-friendly systems boost employee engagement
5. Patience and persistence are crucial for major change initiatives

Søren’s achievements at Hans Følsgaard demonstrate that with the right tools, mindset, and dedicated effort, any company – regardless of its age or traditions – can become more efficient and profitable.

Hans Følsgaard is an international tech company providing innovative technical solutions and products for manufacturing and infrastructure companies, such as fiber deployment, wind energy, solar parks and other industries with an intense focus on the green transition. Founded in 1922, the company has long been synonymous with quality, reliability and integrity.

www.folsgaard.com