The Value
Currently, add*ONE is successfully managing the company’s stock for
several categories of different product types, from different grades of
steel to the range of tools and items sold through their trade outlet.
John Parker & Son has seen a reduction in average levels of stock of
at least 25 per cent compared to previous years. The system has also
helped to speed up decision-making significantly.
Malcolm Nicholson, purchasing manager at John Parker & Son, says,
‘We now have greater visibility of excess stock and this removes a
degree of risk, helping us to make more informed decisions.
This has enabled us to reduce stock levels without impacting on our
service levels. To all intents and purposes, our customers are unaware
that this major implementation has taken place’.
The visibility and forward planning element has been invaluable to
John Parker & Son which can now easily make decisions based on
forward stock profiles as well as looking backwards, which was the only
information available previously. This has helped provide quality
information into its financial planning process, particularly regarding
cash flow.
One of the unexpected benefits of the system was the clear visibility
it gave around excess stock. In an industry where the market dictates
the price, John Parker & Son is able to change prices for limited
times in order to clear excess stock thanks to the ability to see which
products are in need of stock reduction, and by how much.
INFORM was established in Germany in 1969, in close collaboration
with the OR department at Aachen University. It now employs over 350
people at its offices in Germany, the UK and the US. Its UK-based
customers include Bosch Thermotechnology, Fujitsu Services, John Parker
and SFS Intec. For further information, please visit www.inform-software.com.