Achieving a Remarkable 13% Revenue Growth and Reclaiming 20 Hours Monthly Through Effective Inventory Management System Implementation
Project Summary
This 8-figure tool brand came up with the challenges related to inventory management,
demand uncertainties and issues with Amazon Global Logistics.
Brankit implemented an efficient system for inventory management, resulting in a 25%
reduction in Inventory Levels, saving 20 hours/month and a staggering 13% YoY Revenue Increase with 3% Growth in Net Profit.
Initial Hurdles
- Inventory Management Complexity: The Client was struggling with keeping the track of stock levels, POs and shipments resulting in stock outs and overstocking issues.
- Demand Forecasting Uncertainty: Demand planning process was based on guesses and recent sales only creating problems in making decisions about purchase orders.
- Operational Overload: Managing 3PL and supplier communications, manual dashboards and data updates along with other aspects of the business was causing serious burden in seller’s life
- Cost Inefficiencies: The client was lacking a comprehensive view of their procurement and shipping expenses making it difficult to pinpoint opportunities for more profits and process optimization.
- High Working Capital: Extra on-hand inventory and delays in receiving inventory was resulting in a high working capital for running the brand.
Plan of Action
To address the inventory management challenges faced by our client, Brankit devised a comprehensive plan:
Flieber Integration: Onboarding the brand onto our inventory management and demand forecasting software for real-time visibility of inventory levels and demand forecasts.
Integrating Marketing With Forecasts: Brankit implemented a process through IMS to include marketing inputs in the forecast generating 90% reliable data.
Operational Takeover: Brankit assumed day-to-day operations, managing 3PL and supplier communications, overseeing Amazon FBA shipments, and handling international shipments from supplier to Amazon and 3PL.
Order-Up-To-Level Model: Applied OUTLM to the portfolio to segment and assign min/max levels at SKU level, and curated purchase orders (POs) to maintain optimal inventory balance.
Utilizing Amazon Logistics: Transitioned brand to an optimize logistics flow using Amazon Global Logistics (AGL) and Warehouse Distribution (AWD) improving bottom-line profits.
Reporting Structure: Implemented regular reporting, including inventory value and expenses reports with weekly check-ins with client, enabling better tracking of procurement and shipping costs.
Outcomes Achieved
- Improved Inventory Control: Real-time visibility and accurate forecasts led to a remarkable 25% reduction in Inventory On-hand. This strategic reduction in inventory levels significantly mitigated stock-out and overstocking issues achieving 99% In-stock Rate and optimal stock levels.
- Enhanced Demand Forecasting: By integrating marketing inputs into the forecasting process, Brankit achieved a remarkable 90% reliability rate allowing precise decision-making regarding purchase orders.
- Operational Efficiency: With Brankit taking charge of day-to-day operations and introducing automations, operational time was cut down by 20 hours per month. The CEO reclaimed about 40 hours/month allowing a sharper focus on business growth.
- Streamlined Inventory Optimization: Implementing the Order-Up-To-Level Model (OUTLM) led to a finely-tuned inventory balance, reducing excess stock levels and contributing to significant cost savings with more focus on high performing SKUs.
- Maximized Amazon Logistics: The streamlined logistics strategy using Amazon Global Logistics (AGL) and Warehouse Distribution (AWD) contributed to a 3% increase in overall profit margins.
- Financial Insights and Control: The introduction of regular reporting, encompassing inventory value and expenses, provided invaluable insights for process refinement and cost reduction leading to a 30% increase in Year on Year revenue.
Lee Leathers, CEO of Jaeger Tools:
“This team is top-notch! I learned a ton while they
improved our systems, reduced our doc to an optimal level,
and took lots off our plate. A+”
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Aug 16, 2023
Very professional and experienced
Very professional and experienced. We use them for their supply chain management, and direction advise on other areas we can improve. A+
Aug 18, 2023
Highly recommended!
Their expert team seamlessly integrated with our operations, boosting efficiency and productivity. What sets them apart is their tailored solutions, transparent communication, and unwavering commitment to customer satisfaction. Highly recommended!
Aug 18, 2023
Seamless Supply Chain Management by Brankit
In my role as a Brand Manager working with an Aggregator, I've had the opportunity of working with Haseeb from Brankit for the past two years. During this time, he played a crucial role in enhancing the efficiency of our supply chain management within the Home & Wellness Category, which boasts a value exceeding $20 million. Haseeb's contributions have been instrumental in refining our replenishment processes for over 1000 SKUs. Additionally, he has seamlessly integrated technological solutions into our operations through the implementation of ERP and inventory management systems. Working with Haseeb has been nothing but great. His professionalism, expertise, and positive work demeanor shine brightly in all our interactions.
Aug 30, 2023
Ecommerce Guru
To sum up my experience with Haseeb, his proficiency in the field, patience, and thoroughness were exemplary in every aspect of his work. From his impeccable attention to detail to his exceptional personal communication skills, he consistently went above and beyond to meet my needs and exceed expectations. Moreover, his unwavering dedication and ability to effectively communicate in English further enhanced the experience as he tutored me along the way in the Ecommerce journey. If you are looking for detail, knowledge and patience, Haseeb is your guy!
July 06, 2024
Really excellent work all round
Really excellent work all round - highly recommended and will continue using their services.
May 02, 2024
Working for half a year with Brankit..
Working for half a year with Brankit I am very happy. Keep it up!
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