Fast-growing XXL Nutrition maximises stock returns following Slimstock’s solution implementation

XXL Nutrition is a well-known name in the world of sports and health. The enormous popularity of protein, vitamins and other fitness-enhancing products, combined with a sophisticated marketing strategy, has ensured the company’s rapid growth. “When I started here five years ago, we had 35 employees; now we have well over 200,” says purchasing & supply chain specialist Dirk Maas from the distribution centre in Deurne, where thousands of customer orders are delivered every day. The product range is also growing steadily. In addition to sports nutrition in various varieties and packaging forms, XXL Nutrition also supplies accessories and clothing.

Competing on availability

Maas’ main task is to optimise the flow of goods, working closely with the purchasing department. “An essential part of this is ensuring the right level of service, even during promotions and busy periods. We have many competitors and we want to distinguish ourselves from them by offering a high level of availability.”

Additionally, there was at one point a great deal of stock in the warehouse in Deurne.

“Management of inventory was also becoming increasingly complex because, in addition to our own B2C channel, we also started supplying retailers. Our products are now also available on supermarket shelves. This places different demands on logistics and leads to significantly larger order quantities.”

Previously too little insight

The challenge was not so much the quantity of stock, but mainly its composition, explains Maas. “It makes sense that a growing and successful company will also hold a large amount of stock. That contributes to its success. But I want to be able to explain to the financial director why there is so much stock at any given moment. Is it because of the high service levels we maintain? Because of Black Friday, or perhaps because of certain promotions? Or are we keeping extra buffers because a supplier is temporarily unable to deliver? In the past, I had too little insight into this.”

Optimal return on inventory

For the past year, XXL Nutrition’s inventory has been managed using Slimstock software. “We were looking for a solution that would allow us to plan rather than simply place orders. I want to be able to simulate the impact of service levels on inventory value and cash flow. I want to see how a minimum order quantity affects turnover. Together with our CFO, I want to be able to determine the right balance, and Slim4 makes that possible. I can now adjust the parameters so that we get the most out of our stock.”

More efficient ordering process

The introduction of Slim4 gives XXL Nutrition the confidence that everything in the warehouse actually contributes to the company’s success. Maas also sees this reflected in the figures.

“With Slim4, we have 13% less overstock and a healthier turnover rate. Inventory now grows in a controlled manner in line with our turnover.”

The ordering process has also become more efficient. “If you set the parameters correctly and indicate in good time when, for example, promotions, price increases or supplier holiday closures are coming up, the right orders are generated automatically. It gives you peace of mind when you have a system you can rely on.”

Foundation for further growth

XXL Nutrition has laid a foundation on which it can continue its impressive growth without requiring additional warehouse space, working capital or purchasing capacity. Another advantage is that the company can better anticipate market developments. “For example, VAT increases or shortages among suppliers can have a significant impact on our market. Because we now know which levers to pull, we can respond quickly with our stock. In that sense, Slim4 has also made us more agile,” says Maas.