Adamas

Diamond tool manufacturer Adamas must be able to deliver quickly and directly from stock to professionals in the European construction industry. To meet production deadlines, the right raw materials and components need to always be available. Effective inventory management is therefore critical. However, this function was historically organised in a fragmented way and had become increasingly complex. According to Operations Manager Jeroen Molenaar and Supply Chain Manager Marc Knipmeyer, the time had come to professionalise the supply chain.

“We were looking for a suitable tool,” they explain, “but also for a partner with strong expertise in inventory management.”

For almost fifty years, Adamas has been manufacturing drilling, sawing and grinding tools for professional users. In addition to its own product lines, the company produces private label products for other tool suppliers and acts as a distributor for leading brands. The Westland-based SME operates a central distribution centre and production facility in Maasdijk (NL), as well as a production site in Herentals (BE)

“We mainly produce for stock, because most customers do not plan far ahead,” says Jeroen Molenaar. “We also produce specials to order, but even these need to be delivered within a few days. By maintaining a strong stock position, we can deliver quickly and differentiate ourselves in the market. If we cannot meet short lead times, customers will simply turn to a competitor.”

Increasing working capital

Historically, inventory management at Adamas was spread across multiple departments, each managing its own part of the process. Components had to be ordered months in advance to support production, but there was little visibility into actual demand. To mitigate risk, production planning created fictitious orders in the ERP system to ensure sufficient future stock. Purchasing teams often added extra buffers, either to play it safe or to benefit from economies of scale.

“We were constantly anticipating what could go wrong and trying to protect ourselves against it,” explains Marc Knipmeyer. “As prices increased, more and more working capital became tied up in inventory. At the same time, the risk of obsolescence grew, as product life cycles continued to shorten and ranges changed more rapidly.”

Exploring software

It became clear that inventory management needed to be professionalised, with a central role for planners supported by advanced supply chain software.
Molenaar explains: “If you read any logistics trade magazine, you’ll almost always see a Slimstock customer story describing how inventory challenges were resolved. Naturally, you wonder whether that would also work for a company like ours. When we met Slimstock at a trade fair and reviewed their customer cases, we recognised many of the same challenges. That’s what prompted us to request a demo.”

What particularly stood out was the management-by-exception philosophy embedded in Slim4.

“Instead of manually searching for issues, the system highlights future risks and deviations itself,” says Molenaar.

Enthusiastic about Slimstock

“We were also impressed by the level of knowledge Slimstock brought,” adds Knipmeyer. “They don’t just deliver software, they focus on helping you use it effectively and achieve tangible results. That really set them apart from other IT providers we spoke to.”

While Molenaar and Knipmeyer were quickly convinced, senior management naturally wanted to understand the financial impact. “Slim4 represents a significant investment for a company like Adamas,” says Knipmeyer, “but our analysis showed we could recoup that investment quickly. We expected to optimise and reduce inventory by up to 30% within a year, while simultaneously improving availability and internal efficiency. That made the decision straightforward and gave the project high priority.”

Inventory already reduced by a quarter of a million euros

The new supply chain organisation is now fully operational, and Slim4 has been live since the beginning of the year. “The first results are already clearly visible,” says Knipmeyer. “Inventory value has been reduced by 10%, availability has improved by 2%, and we can manage the same workload with fewer resources.”

Purchasing and sales teams no longer spend time on day-to-day inventory issues and can focus on their strategic KPIs. Planners have shifted from firefighting to continuous improvement, such as phasing items in and out, optimising order quantities and strengthening supplier collaboration. “These were activities we simply didn’t have time for before, and they will deliver even more value going forward.”

Positive momentum across the organisation

Both managers look back on the project with satisfaction and highlight Slimstock’s role in its success. “The collaboration was very strong,” says Knipmeyer. “They were responsive, clear and highly knowledgeable. What started as a software implementation became a true knowledge project, which was exactly what we were looking for.” Molenaar adds: “Perhaps the most valuable outcome is the positive momentum it has created internally. Employees see that change is happening and that we are improving as an organisation. That energy is incredibly motivating.”

A structured approach in three phases

Jeroen Molenaar also emphasises the importance of splitting the project into three clear sub-projects: who, how and what. “This avoided endless discussions about objectives or tools,” he explains. “We created three dedicated teams: one to design the future supply chain organisation, one to select the tools, and one to define KPIs and objectives. That clarity gave the project real momentum and ensured everyone knew exactly what they were responsible for.”