Furniture Companies Build Success With ToolsGroup's Inventory Optimization Solution

Manufacturers Natuzzi, Hettich and Targetti Lower Costs and Reduce Inventory

With high-ticket inventory and many product variations, furniture manufacturers face a constant struggle to maintain high customer service levels while keeping inventory costs in check. With ToolsGroup's DPM inventory optimization solution, three industry leaders are meeting these business goals.

Gruppo Natuzzi, a world leader in the production and sale of sofas and armchairs, has relied on DPM for several years to manage its furniture parts inventory. Building on this success, Natuzzi recently chose to employ DPM to also optimize its furnishing accessories.

Pietro Gallotta, Information Communication Technology Manager at Gruppo Natuzzi, explained: "Pleased with the results we obtained with ToolsGroup, we have decided to extend our use of DPM technology to facilitate better management of the entire range of accessories, such as lamps, coffee tables, carpets, etc. These items constitute an integral part of Natuzzi's rich lounge catalog, and are considered to be of strategic importance for the group's continued market expansion."

ToolsGroup's DPM is also found at other successful furniture companies. Furniture manufacturer Hettich and lighting company Targetti are two more examples of companies seeing excellent results.

Hettich Iberia, part of the German group HETTICH, is a world leader in the manufacturing and distribution of ironwork for furniture. At Hettich, DPM manages 15,000 individual items in the central warehouse. After just three months of using DPM, Hettich increased customer service from 78 to 92 percent, reduced inventory levels, and increased sales (due in part to the higher customer service level). And also important to Hettich, a "culture of planning" was instituted, transforming the company's ability to execute against strategic objectives.

Lighting leader Targetti Sankey manufactures and distributes more than 3000 technical and decorative lighting products in more than 70 countries. Targetti chose DPM because of its unique technology for stock mix optimization and service level planning. In addition, DPM has integrated multiple inventory, demand and replenishment planning processes for Targetti onto the same software platform.

About ToolsGroup
ToolsGroup provides inventory optimization software solutions for distribution-intensive businesses. Its powerful stochastic solution optimizes multi-echelon distribution chain inventory, from finished goods assembly to the end consumer, and from strategic network design to daily operations. It allows supply chain managers to meet demanding service levels, while reducing inventory and operating costs. With more than 90 customers in 29 countries, it is the most experienced inventory optimization software provider worldwide. For more information on ToolsGroup and its solutions, please visit www.ToolsGroup.com.