Concrete changes using Expak

Company and challenge

Projecta Oy is the leading Finnish technical trade group. The company delivers tailored solutions for, for example, the wood industry, aluminum machining and processed and flat glass industry needs. The company represents leading international principals and is known to be an expert in innovative technology with over 60 years of experience. Its offices are located in Turku, Vantaa, Vaasa and Tallinn. Its turnover is about 22 MEUR, and the company employs 60 top professionals of their field.

“The indicators began producing results quickly.”
Arto Utriainen, Head of Finance, Projecta Oy

Even though the actual sale of machines does not tie up much capital in stock, Projecta has several product areas in which warehousing and the fast availability of the goods is an integral part of customer service. The biggest challenges were created by the large number of stocked items and the large differences in the purchasing behaviors of the customers between the different product areas.

The goal was to find the products the stocking of which helps Projecta best serve its customers, while decreasing overstocking and the risk of unsold products. At the same time, more accurate information was required on how the warehouse behaves and how purchasing could be managed better.

Solution

Projecta was able to use Expak’s demo with its own data, when Expak connected the solution to Projecta’s Dynamics NAV system. The solution was presented in a concrete way through benefits. The solution offered by Expak fixed the problem with a reasonable investment and suited Projecta the best out of all the options.

Results

Systematic operational model

Expak’s warehouse management brought with it systematics and simplicity to the purchasing operations of Projecta. It has helped in sensibly planning purchasing so that no unwanted products accumulate in the warehouse. At the same time, the stock numbers of moving products have been raised to the target level.

Indicators to support operations

Expak’s solution made planning and choosing indicators and goals as well as collecting indicator data easier. Along with the program, the indicators have been used successfully and they have produced the desired effects quickly.

Results with more precise decision making

Using the program, decision making, item choices and purchasing numbers have become more accurate. For example, in product areas in which warehousing is an integral part of the service, the stock values of rarely ordered items have decreased during the monitored period by 100,000 euros.

Decrease of overstocking

The amount of total stock has decreased and stock structure is more balanced. Overstocking has decreased significantly. In product areas in which warehousing is an integral part of the service, total stock values have decreased by 20 to 50% within a year, depending on the product area

The cooperation of Projecta and Expak produced concrete results

“The Expak delivery provided Projecta with a systematic and analytical mode of operation.”
Arto Utriainen, Head of Finance, Projecta Oy

Projecta Oy required understanding about how the warehouse behaves and how purchasing could be managed better. The challenges were slow turnover and the risk of products remaining unsold. According to Projecta’s Head of Finance Arto Utriainen, wrong products created a significant financial load.

The cooperation of Projecta and Expak started in 2010 from Projecta’s need to develop its purchasing operations.

“For years we knew that analytical thinking and systematics had been kept in the sidelines in operations, especially purchasing,” Utriainen says. Utriainen says that the demo helped create a realistic view of Expak’s solution – an understanding of what could be done and what could be achieved was created.

Creation of indicators led to fast result

Projecta had attempted to design indicators in the past. The problem was known.

“If indicators could be rooted into our operation, they would solve our problems,” says Utriainen about the starting situation. According to Arto Utriainen, the main goal was to develop systematic indicators, whose guiding influence on operative activities would be significant.

“When Expak’s warehouse management was able to show the total information content, large issues were easy to identify. The system helped a lot in the development of the indicators,” Utriainen says.

“And what’s best, the indicators began creating results surprisingly quickly,” Utriainen continues.

Goals have been realized succesfully

Using Expak’s solution, Projecta was able to fully concretize warehouse management for the first time.

“Previously, wrong products created a significant financial load for us. We have tried to create a results orientated and result responsible organization . Using the solution, we have been able to improve operations and the stock values have dropped in a concrete way,” Utriainen summarizes. According to Utriainen, all goals have been achieved: the amount of total stock has decreased and stock structure is more balanced.

“We have now used Expak’s program for management for a little over a year, and I can say that we have made some correct choices.”

“The project has also brought new ideas for the development of customer and principal cooperation. We can influence the contractual terms and keep pricing on a healthy basis, if we can be sure that goods won’t be left unsold.”

“The goals we set for the project have been reached well. The real benefits will be realized during the next 2 to 3 years,” Utriainen summarizes.