Valogix Inventory Planner Helps Company Manage Inventory And Control Spending
Valogix LLC, the leader in inventory management software solutions has helped Herramientas Poderosas (HP), a construction and power tool distributor, reduce inventory costs and increase employee productivity with their Inventory Planning Solutions. HP now saves nearly $80,000 a year and has decreased their days of performing inventory to just 45, bringing their inventory investment down by 22 percent.
"We were focused on having every sku in stock at all times to ensure that our fill rates were at least 95% or better," said Antonio Castillo, CFO for HP. "We didn't spend a lot of time managing our working capital, but with 15% growth per month and warehouse space rent increasing, it became necessary for us to refocus our efforts."
Based in Guatemala City, Guatemala, HP was in desperate need of change in order to enjoy the growth and success they hoped for in their business planning. HP was suffering from excess inventory and inefficient processes. Their goal was to become the industry leader by providing the best fill rates and time of delivery, while still maintaining the highest level of customer service. To achieve their goal, the company needed to identify and reduce slow moving and obsolete inventory, reduce the number of days inventory remained at the warehouse, increase staff productivity and reallocate resources to other projects.
HP chose Valogix Solutions because of their proven results in short time frames. Valogix software solutions help businesses cut unneeded costs without compromising core values such as customer service.
"We were proud to implement the Valogix software with HP," said President and CEO of Valogix, Rich Vaccaro. "With their increased expenses, we were able to forecast and optimize their entire inventory, allowing them to turn wasted stock into cash."
With the help of Valogix, HP has maintained their 95 percent fill rate with less stock and a significantly increased level of employee productivity. HP has managed to dramatically reduce overstocks and dead inventory while reducing their overall inventory value by forecasting, smart purchasing and optimizing their stock.
"We've reduced our inventory value by $320,000 in a very short time while maintaining 95 percent or better fill rates. Shifting the focus from keeping up with our growth to managing working capital has truly allowed us to stay ahead of the competition and keep our customers coming back," adds Castillo. "Using VALOGIX Inventory Planner allows us to reduce our overall capital expenditures and at the same time, deliver the level of service our customers expect."
About Valogix
Since 1988, the founders of Valogix have been leading innovators in advanced inventory planning and optimization solutions. These solutions automatically forecast demand, set optimal stocking levels, identify replenishment items, and optimize the inventory. Valogix solutions are easy to use, affordable, and provide rapid ROI. Dramatic cost reductions, improved productivity, and increased customer satisfaction are benefits received within months of implementation.
Valogix is located in Saratoga Springs, NY, and has hundreds of customers and representatives in North America, Central and Latin America, Europe, and the Asia Pacific region. Valogix is a global, Gold-Level partner of SAP and Premier Business Partner of IBM.
SOURCE: Valogix LLC