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| Distributors |
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| Fruit Growers Cooperative |
Regional Grocery Wholesaler |
Fruit Growers Cooperative
Situation |
| This fruit growers cooperative was seeking to reduce inventory levels, increase
inventory turns, and minimize out-of-stock situations. |
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| Critical Issue |
| Inventory levels were higher than needed yet sales were suffering due to
out-of-stocks at the retail level. |
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| Reasons |
| Our client was unable to accurately forecast appropriate inventory levels to
meet customer demands on a variety of products. At times, inventories were too
high, other times too low. Or even worse, the company had the inventory but had
not adequately stocked customer shelves to accommodate changes in demand causing
lost sales. |
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| Capabilities Needed |
| The company needed a way to receive store-level sales information and use it to
forecast future demand and order quantities for all of its products for several
national grocery retailers. |
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| InfoAccess.net Provided |
| InfoAccess.net provided the client with our Vendor Managed Inventory
application service. This service enabled the client to receive store-level
sales information, forecast future demand levels and calculate required order
quantities for all of their products. |
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| Results |
| Our VMI service provided significant inventory and logistical savings
for the client. Utilizing our VMI service, the client reduced inventory by over
40%, increased inventory turns from 14 to 35, reduced transportation expenses by
46%, and improved their in-stock service levels from 95% to 99%. |
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