Verpa Senco increase service levels by 4%

SENCO is a major player in the market for industrial fastening systems. It is primarily involved in the distribution of nail, staple and screw systems, as well as an extremely broad range of complementary fastening products. The range that is offered results in the European Distribution Centre stocking approximately 12,800 different products – all of which have different characteristics. Slim4, Slimstock’s inventory optimisation software, has allowed Verpa Senco to control their inventory on a high level. Erik Kuijper, Operations Director: “Buying Slim4 is something that we should have done years ago!”

Since 2008 Verpa Senco is the exclusive distributor of Senco throughout Europe, the Middle East and Africa and has experienced fast growth in this time. The Group has acquired its distributors in Germany, United Kingdom and Ireland and has itself adopted a new facility in Turkey. In 2010 Erik Kuijper began to improve the organisation of the Supply Chain within the company. “We are now working on removing as many costs as possible. Prior to Slim4 being implemented, every step in forecasting and inventory control was performed separately and we wanted to make it one clear process.” states the Operations Director of the Poppers Group, the holding company to which Verpa Senco belongs.

We continously reduce supply chain cost

In this context, Erik Kuijper wanted to address the control of inventory “Determining optimal order levels was previously done via a combination of manual and ERP functionality; the result was that the job was not structured and the results were not precise enough. When I saw what Slim4 could offer, I was immediately sold on the idea. It was the system we had to have!”

Availability up by 4% with less stock

After a short implementation process, the results were immediately visible and the ordering process is much less labour intensive. Thanks to the exception reports the shortfalls or surpluses are brought to our attention far quicker. Using the Slimstock Capital Performance Monitor Kuijper is able to maintain optimal inventory levels and monitor specific key performance indicators. The figures speak for themselves. Within seven months of operation of Slim4, stock availability increased from 93.8% to 97.8%; and the ceiling is not yet in sight, states Kuijper. “I expect to reach a 99.5% level on our A items and a 99% level on our B items very shortly. Simultaneously, the number of days stock that we are holding has declined.”

Backorders down means productvity up

The consequences are felt from the planning department down to the warehouse.”Thanks to the decrease in the number of back orders and the use of economic order quantities, we are working far more efficiently within our warehouse.” In response to the question of whether the Slim4 investment has paid for itself, Kuijper answers: “This tool has become a prerequisite for us to be able to manage our inventory. Buying Slim4 is something we should have done years ago!”