How Alas-Kuul is utilising Invendor VMI services to provide customers a smooth procurement process
Thanks to cross-sales and portfolio expansion, the revenue has increased 17%
The entire warehouse is turning 15 times a year, compared to industry standard of 6x
Automation has resulted in reducing manual data entry in an amount of 4 full time jobs
“Invendor has been instrumental in our recent success. Utilizing Invendor, we’ve streamlined our operations by offering goods on consignment and automating inventory management. This automation allows our sales team to focus squarely on sales activities, as the system seamlessly takes care of itself. Moreover, our customers benefit from a hassle-free purchasing experience, as the need for placing purchase orders has been eliminated.”
Wholesaler of industrial goods
Quarterly revenue of €10M
The Baltics, focus on Estonia
More than 70 employees
Launched Invendor 4 years ago
It is well known that companies who provide goods on consignment, must have a strong balance sheet. Imagine, you keep your products at the customer’s location and until the moment of actual consumption, these goods are also on your balance sheet. Wouldn’t it be easier to sell the goods in a traditional way? As soon as the products are delivered, the ownership of the goods is also transferred to the customer and the deal is done.
It seems that providing goods on consignment is a dream come true for the customer. And it is, because the customers pay you only for the goods they actually consume and the moment they consume it. For a wholesaler, it’s a good way to strengthen the entire offering, win new customers, and make existing clients more loyal to your services.
Still, the question remains. How to provide goods on consignment and avoid driving inventory levels high? Continue reading to see how Alas-Kuul has managed it.
Alas-Kuul started the partnership with Invendor in the beginning of 2018. Since the inception, Alas-Kuul has provided the consignment service to 108 customers (as of April 2022) all around Estonia. This is how it works:
If a wholesaler is distributing its goods in a traditional way, then there is always a question about the actual consumption by the customer and constant forecasting. By providing VMI and consignment solutions, you have the actual consumption data 24/7 at your hands, and by using data, you can beat the competition. Thanks to data and Invendor inventory management solution, Alas-Kuul is making 15 inventory turns a year when an industry average is around 6 times a year.
Thanks to the easy and convenient purchase process, customers are also more loyal to Alas-Kuul’s services which results in higher cross-sales. On average, the sales with existing customers increase 17% during the first year after implementing Invendor.
Last but not least, Alas-Kuul is making over 100 000 sales transactions with Invendor solution annually. Imagine if your bookkeeping or sales team would need to manage this level of administration by themselves. This is around 4 full-time jobs! Today, Alas-Kuul can use this time for tasks that actually generate value. And even more importantly, for tasks that people enjoy doing.
“There are three main aspects why we chose Invendor. They have a great team. There are no upfront investments. And they have a full ecosystem that works with our entire product range.”
