Case Airam Electric Oy Ab – MARKED IMPROVEMENTS IN INVENTORY MANAGEMENT, REPLENISHMENT AND LOGISTICS WITHIN SIX MONTHS

Company and challenge

Airam Electric Oy Ab is a family owned Finnish company, with steady financial growth over the past several years. The company has a long history, having worked in lighting and electrical engineering since 1921. Their products are sold across the board in well-stocked department and grocery stores as well as electronics and hardware stores.

The company has increased exporting systematically, targeting the Nordic and Baltic countries, Italy and The Netherlands. They have an in-house product design department, marketing department and they own 8000 square meters of storage facilities in Kerava. The company sources their products mainly from Asia as well a from a few European factories.


Inventory value has decreased by 35 % in six months.
Anna Gustafsson, Logistics director, Airam Electric Oy Ab

Solution

Airam made the decision to implement the Expak Supply Chain Management solution in December 2016. The delivery was made in January 2017 and the solution was ready for use in February 2017. The goal was to reduce inventory value by 3 million euros while maintaining product availability. In addition, it was desired to show more transparency in purchases, inventory and product availability.

Results

Inventory value reduction for over 4 million euros (-35%) in six months
The Expak solution enabled an automated and dynamic inventory and fulfillment management to Airam Electric. The solution has significantly reduced the amount of cash tied up in stock while maintaining availability. Currently the company has remarkedly increased cash balance compared to previous years.

Improved replenishment cycles, while the volume of arriving shipping containers reduced by 50%
With the help of Expak supply chain analytics and the replenishment has systematically improved. Arriving products can now be shelved directly and there's more room to move in the warehouse.

Availability is tractable, availability of high demand products is near 100%
Expak optimizes stock levels and replenishments automatically, so that product availability remains excellent at all times. Expak takes care of the stock control values, manages replenishment and adjusts to changes automatically.

Savings in working hours
Expak automatically takes care of the supply chain analytics routines such as product classifications, re-order points, replenishments and reserve stocks. Furthermore, it considerably reduces working hours in procurement, logistics and inventory management.

How Airam has changed with Expak

Cash tied up in inventory has reduced by over
4 million euros (35%)

Inventory 2016-2017

Improved replenishment, 50 % less shipping containers coming in

Arriving containers 2016-2017

Improved deliveries

Delivered orders

Availability near 100 % in high demand products

ABC-classes

« Back to Our Clients
Airam Electric Oy Ab

Airam Electric Oy Ab

"Inventory was reduced by four million euros in six months"

Asiakkaan kuva
Anna Gustafsson
Logistics director
Toimiala
Wholesale and production
Käyttäjät
Sales, Management
Käytössä

Demand planning
Inventory management
Replenishment
Assortment management

Datalähteet
Verkkosivu
www.airam.fi
Wholesale, Natural products
Wholesale and production
Wholesale, Office and IT supply
Import, professional kitchen equipment
Mobile device services
Manufacturing, workwear
Wholesale, professional kitchen service and restaurant furniture
Food industry
Food industry
Import, secure fastening solutions
Wholesale, laboratory and healthcare sector
Electronics industry
Interior textiles
Food industry
Import, lashing and lifting products and solutions
Food industry
Specialized shop, art and hobby
Food industry
Import, kitchen equipment
Food industry
E-Commerce
Manufacturing, workwear
Food industry
Food industry
Import, filters, seals, mufflers and installation materials
Food industry
Food Industry
Food industry
Food industry
Import, natural products
Food industry
Packing material wholesaler
E-commerce, pet supplies
Import, steel
Food industry
Industry, electronics
Wholesale, veterinary products
Technical business
Import, cooling and air-conditioning
Wholesale, vegetables and fruits
Import / service, machinery
Production, roofs and exhaust pipes
Wholesale, food industry
Import/wholesale, electronics
Toy and paper product wholesale
Import, special surgical products
Purchasing and Logistics
Food industry

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