Case Ruohonjuuri Oy – stock turnaround up and more work time with inventory management
Company and challenge
Ruohonjuuri Oy is a store chain, started in 1982, focusing on selling ecological and organic products. It has six stores, of which four are located in Helsinki, one in Tampere and one in Turku. In addition, the company maintains and has developed an online store. The goal of Ruohonjuuri is to execute profitable retail trade, which adheres to the norms of sustainable development.
At the start, Ruohonjuuri wanted to develop its supplier and selection management while automating order processes. Manual work processes brought along practical challenges, while operations and products in the range kept constantly changing and growing. Ruohonjuuri needed a tool, which would automate the order process, optimise store range management as well as inventory management. The routine work required by these tasks took a lion’s share of product managers’, buyers’ and store managers’ time. Ruohonjuuri uses LS Retail NAV ERP system.
“Stock turnaround has increased by over two units.”
Topias Nieminen, Financial Manager, Ruohonjuuri Oy
Ruohonjuuri chose to use Expak’s Expak because it met their needs the best and was the most cost-effective option. EXPAK automates the stock levels and activity limit calculations to LS Retail NAV system, and it also offers an easy-to-use desktop for managing and reporting the range. All the while Expak simply shares information internally in administration and between stores as well as to suppliers.
Using Expak has brought Ruohonjuuri considerable advantages:
- Stock turnaround time has improved by over two units
When we started, stock turnaround in Ruohonjuuri was below 10. Now it is above 12. These results have been achieved by optimising orders, suppliers and selections.
- Saving work time – one day per week per store
Using Expak has decreased manual labour considerably, both in administration and in stores. Previously, store managers used one day per week to plan selection and orders. Now, after using Expak, it takes around 1-2 hours to complete this in every store.
- Increasing sales and availability with transparency
Our previous operative system did not produce high quality reports, and thus we had to purchase products based on feelings. With Expak the user can directly, easily and in real time filter the product development within suppliers by brands, product groups and products. Easy access to information has clarified the selection of new, removed and campaign items. When this information can be shared with the suppliers as well, availability issues have decreased. This way the efficiency of the delivery chain in its entirety has improved.
- Unified, clear operations with unified information
Using Expak has given us general clarity and it has unified our operations. When unified information is easily available at the organisational level all the time, it is much easier to justify why things are done the way they are, results are much easier to show in figures
Ruohonjuuri chose Expak as its partner
”All supply goals have been met – and more.”
- Topias Nieminen, Financial Director, Ruohonjuuri Oy
- “Expak’s project has been a refreshing change from other IT projects, all set goals have been met, and even exceeded.” says Financial Director Nieminen.
”Expak is a considerable help at store level.”
- Johanna Koskinen, Purchase Director, Ruohonjuuri Oy
- “Before Expak, everything just was simply more difficult. This programme is a considerable help at store level, because it gives sensible basis for making orders. Additionally, sharing information is very easy.” says Purchase Director Koskinen.
Gradual adaptation led to success
Expak delivery was executed step by step.
– At first, getting products into automatic purchases took a lot of time. We started with one store, and its steering values were worked with a lot. “When they worked well, we expanded to other stores. The product responsiblitites from our store in Kamppi, Helsinki, played a key role in the success of this project. They had a great attitude to the project and were able to see its benefits from the very start. People working at store level have felt that Expak has changed the way work is done.” summarises Koskinen when asked about the progress of the project.
Claritiy and efficiency to everyday work
Expak has brought clarity and efficiency to everyday work at stores and within administration
- One thing which has been mentally amazing is that my own work has more clarity and rhythm than ever before. “It is good that I can show in numeric form why things are done in a certain way and why we have this and that product in our selection or campaign. I can justify my decisions and it is so simple to check justifications from Expak. The feeling of not being and doing is enough has considerably decreased. With Expak we can focus on the essentials in both administration and at stores. It is more peaceful to work.” says Koskinen.
Sales have increased even when square meters have decreased
“The numbers speak for themselves: Expak’s EXPAK Delivery has really been successful. Sales, availability and stock turnaround time have all improved. At the same time, the number of square meters in stores has decreased. Development and professionalization has already happened in several different fields. We wouldn’t make it if things were done the same way they were 3 years ago. With the help from Expak we have created a centralised method for supplier management and automatic order processes give us a competitive edge, now and in the future. The project has given the people making orders more professional tools. We couldn’t manage without Expak’s Expak any more, it is vital to our organization.” summarises Nieminen.