Decreasing the workload by using the Logisticar operational model

The project in numbers

Stock values/turnover improved by 35%
Workload decreased by 40%

“Do the right things and do them correctly. Results were seen already in a few weeks and the workload has been decreased by up to 40%,”
says Esko Myllärinen, Wholesale Manager.

Starting point

“When we began our cooperation with Logisticar, we had no other indicators except stock turnover. We solely focused on turnover and our warehouse staff ran between the shelves on a daily basis checking what had been sold and what had to be restocked. The most common filters were ordered in larger batches, but otherwise restocking was done when an item was sold, one by one. The introduction of Logisticar opened our eyes to the impractical amount of work we were doing for nothing and helped us realize that the key to sensible warehouse management lies elsewhere than simply focusing on turnover.

Solution to problems

The Logisticar operational model is used for monitoring the indicators of Autokeskus for every dealership and brand. They are used to monitor turnover speed, service level, workload and overstocking. The product policy was updated and the order points and purchasing batches of stocked items were redefined. Dealership-specific items are managed using the ABC philosophy and an item management was set up for the most important items. Now the product policy is easy to maintain, there are clear indicators for the entire chain and both reporting and ABC philosophy are being actively implemented.

Control values are continuously calculated in the background to monitor consumption and the restocking of units is now regular and based on facts. Also the consumption history of items is monitored carefully. We also use Logisticar in the online sales of non-marketable parts, and use it to monitor possible unsold items.

Results

Thanks to the changes, the workload for stocked items has decreased by up to 40%. This has enabled the use of warehouse staff for more productive work and for better customer service. This was concretized already after a few week’s use, when the warehouse staff were surprised by the small size of the delivery. Through continuous development, we have been able to stop the growth of the number of unsold items and sell items online that would have otherwise remained unsold until scrapping. Our stock value has risen but our business has grown, and that is why our most important indicators are decrease of workload and improvement of service level.

Customer introduction

Autokeskus Oy is a full-service car dealership chain owned by Aro-Yhtymä, which is one of the biggest operators in the car business in Finland. The strengths of the company are in particular new products, the best dealership locations and the newest systems. And everything is held together by the skilled and motivated staff.

Dealerships are located close to the customers and their services include the sale of new and used cars, brand services for their own brands and basic services for all brands, damage repairs for all brands, a comprehensive tire service as well as sale of spare parts and accessories.

The goal of Autokeskus is to be the leader in the business with satisfied customers, stakeholders and staff. At the core of the operation are financial, environmental and social responsibility. The development of these responsibility areas is actively monitored and improved in order to maintain the quality and development of the operation.