Frank van der Weide

Director of Operations | Tegelgroep Nederland

"With less stock on hand, new construction has become less urgent"

Tegelgroep Nederland is the market leader in the Netherlands when it comes to tiles. Thanks to Slim4, the tile distributor has achieved significant results: 15% stock level reduction and 97% service level achieved.

Tegelgroep Nederland is the market leader in the Netherlands in the field of tiles. Thanks to its six different brands, the company, which is part of the listed Saint Gobain group, offers the widest range of products. The warehouse in Andelst holds 4,500 different types of tiles in stock. In early 2009, Tegelgroep Nederland implemented Slim4. Frank van der Weide, Director of Operations, explains: “We strive for performance excellence, including in inventory management. Slim4 represents the best practice in this field.”

Anyone who leaves the Tegelgroep Nederland showroom will never look at tiles the same way again. The ceramic powder-pressed, fired, and glazed floor and wall coverings are truly a design product. Tegelgroep Nederland supplies these through brands such as V&S Tiles, Jos Haag, Keramaat, and Mieloo to both retailers and DIY stores.

Additionally, the company designs tile floors and walls for well-known brands such as Albert Heijn, McDonald’s, Claudia Sträter, Audi, and NH Hotels. “We aim to build a competitive advantage by being better than our competitors, including in inventory management,” says Frank van der Weide, Director of Operations at Tegelgroep Nederland.

“Our customers are increasingly holding less stock themselves. This means they must be able to rely on us to have it available.” Tegelgroep Nederland found best practices in inventory management with Slimstock, the supplier of the AI-driven supply chain platform Slim4. “Of course, it was an adjustment for employees who had to change their way of working after 20 or 30 years. However, Slimstock provided excellent support.”

The primary reason for implementing Slim4 was to reduce working capital. Since 2001, Tegelgroep Nederland’s revenue has doubled. “If you continue with the same turnover rate, your inventory will also double.” The goal has been achieved: within six months, Tegelgroep Nederland reduced its stock by 15%, while improving the service level from 94.5% to 97.5%.

 

Improved Service Levels

The reduction in stock levels at Tegelgroep Nederland is also noticeable in the warehouse. Due to rapidly increasing sales, the 14,000-square-metre facility had become far too small, leading to inefficiencies. “When you have an average occupancy rate of 98%, it can sometimes take a long time to bring in new pallets.” To solve the space issue, Van der Weide had seriously considered new construction. However, thanks to the implementation of Slim4, this decision could be postponed. “With significantly less stock on hand, new construction has become much less urgent. That worked out well, as the conditions for new construction last year were far from favourable.”

The investment in Slim4 has proven to be a much better decision in this regard. The reduction in stock levels has led to a positive cash flow. And the effects of Slim4 are not yet fully realised.