AVDtrade

AVD Trade is engaged in retail and small wholesale trade of auto parts. The company has a distribution center specializing in wholesale of spare parts for European cars and serving 1500 dealers.

Since 2003

on the market

More than 50

leading European brands

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Background

The need to fulfill urgent orders from suppliers at a high price.

High probability of untimely or incorrect ordering.

Frozen funds in large quantities of goods. Lack of time for assortment management. Lack of flexibility to adapt to changes in demand.

High logistics costs due to unscheduled orders.

Lack of analytical tool to deal with problem areas and key indicators.

Lack of data on the conditions of ordering to the supplier (minimum order, multiplicity).

Generating orders manually in Excel at the discretion of managers.

From the store to the distribution center (DC) there was only one scheduled order per day and forced three unscheduled orders with same-day delivery.

Absence of assortment matrix in the context of warehouses when the assortment of the store and CA differs.

Lack of data on suppliers' order and shipment schedules.

Commodity accounting system: 1C. The responsibility of each manager covered 10 thousand unique goods.

Project objectives

Streamline internal business processes from order to sales receipt.

Reduce excess inventory and improve turnover.

Minimize missed sales.

Optimize the activities of the purchasing department.

Free up managers' time in favor of assortment management.

Project progress

Inventory:

Inventory was carried out to update data on stock balances and in the accounting system, and a ban on minus sales was introduced.

Order Optimization:

After the technical integration, stock buffers were automatically calculated, which optimized the ordering process.

Process Automation:

Installed automatic dispatch of orders from the store to the central warehouse, which improved the handling of alternative products.

Analytics:

An analytical module for monitoring and controlling key indicators of inventory management was connected, which ensured data transparency and analysis of problematic commodity items.

Implementation results for AVD Trade

reduction of surplus (enterprise-wide figures)

reduction of lost sales (enterprise-wide figures)

Reduction of missed sales (store indicators)

Reduction of surplus (store figures)

Improvement of turnover (store performance)

Qualitative changes

Reduce order handling time in favor of assortment management.
Transparency of data on all transactions for each SKU/location.
Analysis of problematic product lines.
Increased availability due to supplier review.
Reduce rush orders and logistics costs.

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