Managing consignment inventory can be tricky – especially when you’re aiming to keep stock levels lean and operations efficient. For Estonia-based wholesaler Alas-Kuul, the goal was to modernize inventory processes without adding complexity or manual work.
With real-time consumption data, ERP integration, and smarter stock levels, Alas-Kuul has reached record revenue levels – and made life easier for both their team and their customers.
Key results
By adopting Invendor’s smart inventory management tools, they found a way to simplify stock handling, improve customer satisfaction, and drive measurable business growth.
Since adopting Invendor’s automated inventory management system, Alas-Kuul has achieved:
- 20% more sales through cross-selling and stronger customer relationships,
- 100% increase in inventory turnover, going from 8 to 16 turns per year, and
- Over 100,000 sales transactions handled automatically each year, saving the workload of four full-time employees.
“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.”Joel Tõemets, Head of VMI Solutions
Growing expectations from the customers
One of the key reasons Alas-Kuul chose to implement Invendor’s vendor managed inventory system was to stay competitive in a rapidly evolving market. To meet rising expectations, they needed to offer a modern, digital inventory solution that was simple, transparent, and easy for customers to use.
Today’s customers want convenience – they expect the distributor to manage consumables and stock levels on their behalf, as inventory handling is not their core task. With Invendor’s tools, Alas-Kuul gained real-time visibility into inventory levels, enabling them to proactively suggest new products and ensure timely replenishment. The result is a seamless partnership where both the distributor and the customer benefit – a true win-win.
The challenge: Managing consignment inventory without driving inventory levels high
Providing goods on consignment can be a powerful way to meet customer demand and strengthen relationships. Customers love it – they only pay for what they actually consume, and only when they consume it. From their perspective, it’s a seamless, low-risk experience. But for the wholesaler, this model requires careful planning and financial stability.
In a consignment inventory strategy, the supplier retains ownership of the goods until they’re used. That means the products stay on the distributor’s balance sheet, even while sitting at the customer’s location. Because of this, distributors must keep their inventory levels tightly optimized – too much stock means unnecessary costs, and too little stock risks disappointing the customer.
The challenge for Alas-Kuul was clear: how to offer the convenience of consignment inventory while staying lean and efficient. That’s where a smart, automated vendor managed inventory system became essential.
The solution: Alas-Kuul’s smart consignment inventory strategy
Alas-Kuul began its partnership with Invendor in early 2018 to implement a scalable VMI solution that would meet growing customer demand for transparency and convenience. Since then, the company has successfully rolled out its consignment inventory strategy to over 100 customers across Estonia.
Here’s how the process works:
- Product selection – Alas-Kuul and the customer agree on a tailored product range that fits the customer’s needs.
- Consumption registration – The customer is equipped with at least one of Invendor’s digital inventory management tools:
- Capture cabinet (scan-based registration)
- Gravity cabinet (weight-based registration)
- App Storeroom (scan-based registration)
- Stock setup – Both parties agree on initial inventory levels and replenishment intervals.
- Live tracking – The customer begins logging all consumption through the Invendor system.
- Seamless integration – Data flows directly from Invendor’s server into Alas-Kuul’s ERP system, triggering:
- Automated purchase orders, delivery notes, invoices, and stock count journals
- Real-time warehouse transactions and synchronized product assortments
- Data-driven optimization – Invendor’s smart algorithms adjust stock levels automatically to meet demand without overstocking.
The Outcome: Record Growth and Stronger Customer Loyalty
Traditional wholesale distribution often relies on forecasts and guesswork – leaving room for error and inefficiency. By shifting to a vendor managed inventory model and adopting a smart continuous replenishment strategy, Alas-Kuul now has real-time visibility into actual customer consumption. This access to live data has helped them respond faster to changes in customer demand and gain a competitive edge.
Since implementing Invendor’s digital inventory management solution, Alas-Kuul has achieved:
- 16 inventory turns per year, more than doubling the industry average of 6;
- A 20% increase in sales from existing customers within the first year, driven by improved service and exploiting cross-selling opportunities;
- And over 100,000 automated sales transactions annually, saving the equivalent workload of four full-time employees.
With less time spent on manual administration, the team can now focus on meaningful work that adds value – and customers benefit from a faster, smoother purchasing experience.
“There are three main reasons we chose Invendor: they have a fantastic team, low total cost of ownership, and their ecosystem supports our entire product range.”Joel Tõemets, Head of VMI Solutions
Behind the numbers
20% sales growth
Since implementing Invendor’s vendor managed inventory system, Alas-Kuul has seen a 20% increase in sales, driven by cross-selling opportunities and expansion of product portfolio. The automated vendor managed inventory system not only helps retain existing customers but also makes it easier to onboard new customers by delivering a smoother, more convenient purchasing experience.
Because VMI improves cash flow by delaying billing until consumption, Alas-Kuul is now able to offer a wider selection of products — something that wouldn’t have been possible under a traditional sales model. This flexibility strengthens their position as a trusted, go-to distributor.
100% increase in inventory turns
Alas-Kuul has achieved a 100% increase in inventory turnover, with its warehouse now turning 16 times per year compared to the previous 8, and far above the industry average of 6. The key behind this performance is Invendor’s More-or-Less tool, a core component of their VMI solution.
This smart tool helps monitor inventory levels, smooth out supply chain disruptions, and improve buffer management both at the central warehouse and at customer sites – including storerooms tracked via the Invendor app. When customer demand shifts, the system enables rapid response, ensuring that inventory flows smoothly and nothing stands still – neither in the customer’s nor in Alas-Kuul’s warehouses.
100,000 transactions
Alas-Kuul now handles over 100,000 inventory transactions every year – without needing to hire extra staff. What traditionally would take the time and effort of four full-time employees is now fully automated, thanks to Invendor’s vendor managed inventory system.
Each customer’s warehouse is connected to the system, so there’s no need to track orders or stock levels manually. With the help of Invendor’s More-or-Less tool, Alas-Kuul can keep an eye on inventory buffers – both in their central warehouse and across customer sites – making sure the right products are always in stock It’s a smarter, more efficient way to work that saves time, cuts admin, and keeps customers happy.
More sustainable inventory management
The shift to automated VMI also supports sustainable inventory management. With better visibility into product usage, customers consume only what they need, reduce excess stock, and avoid waste. Fewer items are thrown away, and the entire process becomes more efficient and environmentally friendly.
From Guesswork to Clarity: Real-Time Visibility into Customer Consumption
Without a digital VMI system, distributors often lack visibility into customer consumption patterns. Orders may be placed irregularly, and it’s difficult to tell whether a customer is stocking up for one month or three. This lack of insight makes forecasting and restocking guesswork.
With automated inventory tracking and real-time data, Alas-Kuul can see exactly how stock moves. They know when and how often items are used, allowing them to restore inventory levels accurately and maintain agreed stock buffers. This not only ensures availability but also builds trust by meeting expectations consistently.
A Common Concern: Will Vendor Managed Inventory Reduce Revenue?
One common fear among vendors is that using a consignment inventory model – where products are placed in cabinets or on shelves and only invoiced after use – might lead to a drop in revenue. However, our experience shows the opposite.
While there may be a slight dip in sales during the first 3–6 months, this is often a transitional phase as customers adjust to the new system. After that, sales tend to grow steadily. In fact, many customers find the system so convenient that they begin consolidating purchases through a single supplier – giving that distributor a clear competitive advantage.
There have also been cases where, after reviewing the product assortment with the distributor, customers request even more products to be added to their on-site industrial vending machines. This leads to an instant increase in sales and deeper customer engagement.
By offering VMI solution that makes life easier for the customer, distributors build stronger relationships and create new growth opportunities.
In Conclusion: VMI Drives Loyalty, Efficiency, and Growth
A well-managed vendor managed inventory system plays a key role in building customer loyalty and improving the overall customer experience. When inventory is handled through a smart, automated solution like Invendor, the benefits are felt on both sides. There are several advantages:
First, customers can reduce their workload by handing over stock management to the distributor. The vendor takes full responsibility for maintaining optimal inventory levels and replenishing stock when needed – eliminating the daily hassle that managing their own inventory often brings.
Second, with a consignment inventory model, customers only pay once they’ve used the items. This frees up their cash flow, allowing them to allocate resources more strategically rather than locking money into unused stock.
Third, the need for additional staff disappears. Automated inventory systems take over the tracking, ordering, and reporting – all without extra manpower.
And lastly, customers gain full visibility into available inventory: what’s currently in stock, where buffer levels stand, and what needs replenishing. This kind of transparency and control is what modern buyers expect.
For distributors, a well-executed VMI strategy is essential for staying competitive and supporting long-term growth.
By combining automation, visibility, and convenience, Invendor has helped Alas-Kuul grow its revenue, improve efficiency, and build stronger relationships.
About Alas-Kuul
Company type : Wholesaler of industrial goods
Revenue: Annual revenue of €27M
Market: The Baltics, focus on Estonia
Employees: More than 80 employees
Launch: Launched Invendor 7 years ago
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