LFE

LFE has millions of bottles of wine in stock and needs to be able to constantly match this to demand. With Slimstock’s inventory management platform and training from the Slimstock Academy, the company has taken a big step forward in reducing inventory value while increasing service levels.

LFE is a Dutch wine importer that purchases its wine all over the world. From its distribution centres in Utrecht and Maartensdijk, it serves two markets: retail and out-of-home. “Being able to deliver from stock at all times and providing excellent logistics service is what our customers expect from us,” says Frank den Hartog, Director of Business Process Management.

The large supermarket chains that LFE supplies regularly run major promotional campaigns for wine. “To respond effectively to this, we have to ensure that we can cope with peaks in demand without building up too much stock.”

Manual ordering process

LFE had a forecasting tool, but it was starting to fall short. Ordering was largely manual, and buyers spent a lot of time assessing purchasing recommendations. Optimal stock levels required more than just demand forecasting. The company therefore decided to implement a complete inventory management system and, after an extensive selection process, chose Slimstock. “Slimstock’s tool supports buyers and planners across the entire spectrum of their work process. But what helped tip the balance for us was that Slimstock has its own training arm: the Slimstock Academy. This allows our people to continue developing, because that knowledge component is very important to us.”

More focus

After a few months of implementation, LFE is already seeing improvements, and an enhanced level of team focus among the people who work with it. “What I personally find very powerful is that in Slimstock’s solution, everyone has their own “to do” screen where they can see what their priorities are at that moment. They also receive alerts on this screen when immediate action is required, for example when a customer places an order that is much larger than expected. A purchaser can easily analyse the consequences for stock and, if necessary, immediately contact the supplier to reorder in good time.”

Segmenting and prioritising

Thanks to the training courses at the Slimstock Academy and the support of the consultants, the people at LFE now have the knowledge they need to continue optimising stock themselves. “What I have learned about inventory management is that there is always a small percentage of items that cannot be left to an automated system. The trick is to get a good picture of that small percentage. We have now got the hang of segmenting and prioritising the product range. We have become much more efficient and are closer to the customer.”

Collaborative forecasting

Den Hartog is confident that Slimstock’s solution will lead to lower stock levels and a better level of service for customers. “We haven’t been working with the software long enough to quantify this, but I’m sure it will work out well. We will also be working more closely with our customers and using collaborative forecasting to further improve our service. Some of our customers also work with Slimstock’s solution, which makes sharing supply chain data even easier. This will take inventory management across the entire chain to the next level.”