Better product turnover using LeanwareSCM

The project in numbers

Arriving rows decreased by 30%
Level of service rose by about 5%

“Using LeanwareSCM, the stores stock items that actually sell. We have been able to increase stock turnover and lower stock value.”
Päivi Yli-Juuti, Chain Coordinator

Starting point

The stores controlled orders and stocks independently and there was no total picture on company level about how many units of each product were sold in each store. The result was that Pentik’s stores sadly had deficiencies when it came to product availability and at the same time some stores were overstocked with the same items. Salespersons also wasted time on ordering a wide variety of stock and checking balances.

Solution to problems

During the implementation of LeanwareSCM, a store-specific selection was created for Pentik that defined the product selection in accordance with, for example, store size. Using ABC classification, it was analyzed, which products were important and the ABC philosophy was implemented in practical tasks. Results showed quickly, and now the stores have stock that is actually bought.

Using the right selection and automatic restocks, Pentik has grown its stock turnover and service level and lowered stock values. Products don’t just sit in the warehouse anymore and are circulated instead. Stores receive stock in accordance with demand and there is no overstocking. Additionally, it is easier to weed out products that are no longer in selection from stores and direct them to the outlet stores. Stores receive automatic purchasing suggestions from the order service, which has been calculated in LeanwareSCM. This makes the everyday tasks in stores easier by making ordering quicker and by helping the monitoring of selection, stock and sales.

The store stock values went down by 1.5 MEUR during two years. The number of arriving rows decreased by 30% and the level of service rose from 93% to 98.5%.

Customer introduction

“Pentik is an international interior decoration chain, which provides a dash of Nordic beauty and homeliness to people’ homes. We think that an inspiring home is created by combining Finnish craftsmanship with the most beautiful finds from around the world.

The company was founded in 1971 and has since provided Finnish homes with dishes that have now already become classics. Pentik employs 320 people, and its ceramics factory is the northernmost in the world and is located in Posio near the Arctic Circle.

We use unique production technology developed over 40 years, which enables us to produce a versatile selection and small batches.”