Customer Success Stories
Kruuse reduces stock with 1,6 million euro
In just a single year, Jøren Kruuse A/S reduced its stock by 1,6 million euro – while maintaining its high service level. The work was part of the change project known as ‘from family-run to fact-based’.
The plan was to boost profitability at Jørgen Kruuse, the largest manufacturer of veterinary products in the Nordic region. The family-owned wholesaler and manufacturer was seeking in particular to boost turnover rate, and clear out old products that were not selling sufficiently well.
1,882 products have been removed from the product portfolioLouise Nielsen, Purchaser
Pilot project showed the way
In December 2012, Kruuse launched a minor ABC pilot project, with the aim of making stock management and purchasing much more data-driven. Louise Nielsen, purchaser, was chosen as test pilot along with her 3,400 product numbers.
The two-month trial period generated good results, so Kruuse decided to roll out the ABC concept for all purchasers and all 15,000 products in February 2013.
‘The long tail’ severely docked
“We have achieved a good balance in our number of products: When new products are introduced, old products are cleared out of the range,” explains Louise Nielsen.
The products Kruuse has in its warehouses today are the ones that customers want – and not only the products that customers were asking for last year. The number of ‘dead products’ has been almost halved.
1882 products have been removed from the product portfolio, and today monthly updates of the abc-codes ensure that the least popular products are cleared from the range continually.
One week’s work cut down to 3 hours
Kruuse has gained more than economic advantages from the project. Previously, it took an employee a whole week to align five Excel spreadsheets so as to update the ABC categories and calculate the safety stock. Today the manual update of data from ABC Analyzer to the ERP system takes just a few hours.
Boost turnover rate, and optimize stock to fit customers’ demands
Today employees at Kruuse work systematically with data. New work routines based on facts have been deployed in purchasing and logistics.
Stock reduced by 1,6 million euro, turn overrate improved while the high service level is maintained.