Background
Before implementing ABM Inventory, VOVA managed its inventory using an ERP system. This semi-manual process involved 8 category managers and 6 purchasing managers, which often led to human errors.
High risk of out-of-stock situations leading to lost wholesale orders.
Accumulation of surpluses resulting in extended storage times and spoilage.
Inefficient and error-prone order placement processes.
The need to scale inventory management in response to expanding product range and sales channels.
Progress of Implementation
The implementation of ABM Inventory was carried out in three stages:
Stage 1: Research and Data Exchange
Stage 1 involved thorough research of VOVA's business processes and establishing seamless data exchange between the existing ERP system and ABM Inventory. This foundational step was crucial in ensuring that the integration would be smooth and that the new system would complement VOVA's existing operations.
Stage 2: Assortment Connection and Employee Training
Stage 2 focused on connecting part of VOVA's product assortment to the ABM system. This required a revision of the assortment matrix, including active SKUs, and checking various parameters such as goods movement, balances, and write-offs to ensure accuracy. Concurrently, extensive employee training was conducted. Specialists, commercial directors, IT experts, and purchasing managers all participated in hands-on sessions where they learned to set parameters, work with indicators, create, and send orders, among other tasks. This comprehensive training ensured that all relevant staff were proficient in using the new system.
Stage 3: System Setup and Adaptation
Stage 3 involved setting up ABM Inventory BI analytics and adapting the system to meet VOVA's specific business needs. The well-coordinated communication between the implementation teams made this stage fast, transparent, and efficient. Once the system was fully operational, the project was handed over to Customer Success for ongoing support, ensuring that performance indicators were monitored and further improvements were identified.
Implementation Results
Key effects of implementation
Qualitative Results:
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Enhanced transparency and structure in the inventory management process.
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Improved customer service quality through increased product availability.
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Significant reduction in labor costs and human errors.
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Effective tracking of supplier reliability, improving mutual interactions.
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Establishment of clear delivery schedules and cooperation terms with suppliers.
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Automation of reporting and analytics for better business process analysis and decision-making.
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Simplified order creation process and improved managerial oversight, reducing the risk of incorrect orders.