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
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.
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%)
Improved replenishment, 50 % less shipping containers coming in
Availability near 100 % in high demand products