Inventory Optimization in the Artistic Sphere through SaaS Solution

Making art supplies might seem simple, but creating each drawing, palette, or brush involves a careful process that demands attention to detail and top-notch quality from the manufacturers. In the world of competitive creativity, this production is a key chain in delivering art to everyone around you, and the choice of high-quality materials is crucial for customers. Let’s discuss how a SaaS solution can change the way you manage your inventories in the Artistic Sphere and what features and competitive advantages are hidden behind each brush.

Company information:

ROSA is a leading Ukrainian manufacturer of professional art products, hobby and decorating materials. Artists from 36 countries of the world choose ROSA brand products to realize their creative ideas.

“Our mission is to create and improve products that meet the needs and expectations of our customers. We study the latest market trends and introduce new technologies. Our qualified team and state-of-the-art laboratory allow us to create products that meet the highest quality standards.”

The range of ROSA products has more than 10 thousand items, and the map of stores where people can buy ROSA products goods looks like this:

What events accompanied the onset of changes in inventory management?

In today’s BANI world, which has filled life since the start of the pandemic in 2020, project realization has become more complex. The term BANI describes our modernity as something like a fog where it is impossible to predict everything:

B – brittle

A – anxious

N – nonlinear

I – incomprehensible

Here are some large-scale events that have impacted the technology implementation project at ROSA:

• The COVID-19 pandemic broke out just before the start of the project.
• Container crisis that was observed throughout the project.
• A full-scale invasion of Ukraine by russia during the project support phase.

ROSA overcame these challenges during the project, thanks to the high level of competence of its team and the use of technology that allowed them to work and achieve results even in such unpredictable circumstances. Let’s talk about them in more detail.
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What inventory management challenges accompanied ROSA’s business before the SaaS Solution was implemented?

Rosa’s journey has been filled with complex challenges, here are a few of them:

• Procurement planning and lack of up-to-date tools:

  Procurement planning was carried out using Excel. The assortment had more than 20,000 items, and for each of them it was necessary to create a formula, which increased the probability of mistakes.

• Weak of service level:

  the company sought to improve it by becoming a more reliable supplier to the global market.

• Unstructured inventory information:

  Basic logistics terms (minimum order quantity, multiples of orders to supplier or to production, procurement and production lead times), were often atomized and inaccessible to workers.

• Inability to accurately calculate replenishment requirements:

  Had to operate for extended periods of time when some items were out of stock.

• The lack of analytics:

  It was difficult to analyze stocks across the chain.

• Ineffective response to big export demand orders:

  The company received a different export demand order each month, and each time required a response from all sections of the supply chain.

• Difficulty in planning the procurement of long-term goods:

  Some components had long lead times, making it difficult to plan for them.

• Long production lead-time of some products:

  Reducing production lead-time would be an important competitive advantage.

These were some of the challenges that accompanied the ROSA business before implementing SaaS Solution for inventory management.

The main reasons for choosing the software:

The choice of Intuiflow cloud SaaS software at ROSA was influenced by several key factors:

• SaaS model of system operation allowing the company to focus on optimizing processes.
• The system provides a visual representation of problem areas and the current state of affairs, which allows you to quickly identify and solve problems.
• Intuiflow integrates all parts of the supply chain, from raw material procurement to inventory management in the distribution.
• The company provides consulting support, which is an important component of a successful SaaS implementation.
• Intuiflow has an implementation technology that allows systematically recording stages and developing plans for changes in business processes.
• The Saas Product provides numerous planning options, taking into account varying stability or variability in demand for each item.
• Intuiflow allows you to create purchase orders for raw materials and finished goods production based on their lead times, supplier terms, constraints and production line settings.

Also, an important factor was full training on the DDMRP methodology before implementation. Managers from various departments studied the methodology and saw its simplicity and relevance to their ideas about inventory management.

ROSA Project Objectives:

The production inventory management tasks assigned to the project were filled with big ambitions for important improvements:

• Inventory structure optimization:

  The project aims to allocate stocks and materials efficiently, guaranteeing their availability for production and reducing overstock, thus saving resources and reducing financial costs.

• ROI increase:

  One important goal is to increase return on investment (ROI) through optimizing inventory management processes and improving manufacturing productivity.

• Service level improve:

  The project aims to increase the customer service level by ensuring that products are delivered on time and in full, which will increase customer loyalty.

• Lead time reduction:

  Accelerating production and delivery times will allow the company to be more responsive to changes in demand and market conditions.

The main stages of SaaS system implementation:

I. Preparing for the project launch including:

• Survey of the company’s current processes and collection of necessary data
• Data updating and formalization in the inventory management system
• Training of the team in Demand Driven MRP methodology
• Setting up data exchange between the Intuiflow and the ERP

II. Project launches including:

• Supporting managers in working with orders to production, as well as in working with deliveries
• Correction of data from ERP issues
• Intuiflow software training for users

III. Support that provides:

• Training staff to use the system
• Customizing system parameters
• Meetings and recommendations to improve inventory management
• Training on analytics and software settings

After the implementation, ROSA received access to support and recommendations on improving inventory management from ABM Cloud specialists. The planned duration of the project was 7 months, but the project took 8 months. The delay arose due to the simultaneous implementation of semi-finished product accounting and limited programmer resources at the customer.
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Main economic results

After four months of working with the Intuiflow, we have made important steps toward achieving goals:

• Overstock decreased by 30%
• Out of stock decreased by 45%
• OTIF – On Time In Full increased by 13%
• Production Lead Time halved

ROSA has also realized other benefits:

• Reduced reliance on human factors thanks to digitized data recording and reduced mistakes.
• Visualization for suppliers, allowing for better collaboration and forecasting of purchases.
• Use of project results for financial planning and centralization of production planning.
• Active support from Customer Success that maximizes business results.

The SaaS implementation of inventory management systems in manufacturing is a critically important aspect. These technologies enable production optimization, cost reduction, and enhanced resource utilization efficiency. Incorporating modern technologies helps ensure stability in production and product/service deliveries, fostering innovation and the development of new resource management strategies. Therefore, it is crucial to leverage technology to enhance business efficiency at all times.