As the sole representative of Hyundai in Panama, Petroautos is one of the most important Automotive companies in the region. As a business that strives to offer customers the most value in the market, the automotive distributor set the standard in efficiency and effectiveness. This value proposition is reflected in its inventory strategy.

Thanks to Slim4, Petroautos has found the balance between being a leader in the automotive market, while optimising space at the distribution centre. As a result, the business increased service levels to 96% as stock-outs and excess were both cut by 50%.

More breathing space at the DC

The business often suffered from a shortage of space at the central distribution centre. To support continued growth, the business built a new distribution centre. While the new site was three times the size of the old distribution centre, Petroautos’ sales have doubled. Consequently, the business expected that they would run out of space within just 5 years.

To prevent this, the business decided that they needed to change the way they manage inventory as well as attain more accurate forecasts of future sales. To help refine their approach to inventory management, Petroautos turned to Slimstock to implement its supply chain optimisation solution, Slim4.

The objectives were clear: minimize excess inventory, prevent obsolescence, and better utilise the available space at the distribution centre

Experts in inventory management

The implementation took just 4 months. Luis Felipe, Director of Aftersales at Petroautos, highlights the implementation methodology: “the process was well structured, with clearly defined milestones.”

Part of the success was having very close collaboration with the Slimstock and Petroautos team working hand in hand. Luis Felipe continues: “Training is key and Slimstock not only explains how to use the tool; They also share all their theoretical and practical inventory management knowledge. With this specific industry expertise, Slimstock knew where to focus on to help us reach the maximum potential of the system.”

With the experience of working with many suppliers, Luis Felipe adds: “Slimstock’s service is excellent. They always respond to our requests as quickly as possible and they are always on hand to support us.

Improved productivity

As a result of the Slim4 implementation, Petroautos were able to buy inventory more efficiently. “Thanks to Slim4 we freed up space for productive inventory. This meant that space at the DC was no longer a problem” states Luis Felipe.

With Slim4 now fully implemented and a dedicated key-user in place, Petroautos has made an inventory reduction of 21.5% in just 9 months, while cutting stock-outs by half. Furthermore, service levels increased to an average of 96%. The director concludes: “We obtained a return on investment within the first year.”