Manufacturer and Distributor of Home Healthcare Solutions uses Valogix Inventory Planner to achieve high fill...
Read More >Valogix allows us to know what we are going to need before we need it. It sees trends and usages and helps us plan for them. This would not be possible the way we were replenishing prior to Valogix.
Car Wash Services of the Southeast (CWSSE) began 50 years ago as Action Car Wash and has quickly transformed the carwash industry on the East Coast. CWSSE serves seven states, with six warehouses in North Carolina, Tennessee and Georgia and is recognized as a leader in design and installation.
CWSSE prioritizes customer service and provides around-the-clock service, design and installation with extensive parts and chemicals warehouses, getting chemicals to customers quickly and more cheaply than other area suppliers.
After implementing Valogix Inventory planner in 2010, CWSSE has continued to enjoy rapid growth with significant ROI while continuing to dominate their marketplace.
One of Camlab’s priorities was to rebalance their inventory for the A and B lines while increasing service levels across all lines. After implementing VALOGIX, their overall inventory spend decreased over the previous six months and their service levels.
As seen in the graphs above, be-ginning at week 35 when Valogix was implemented, Camlab experienced a dramatic increase in service levels across all lines while realizing a 7.5% decline in overall inventory value down to ₤740,000 (approximately US $841,000).
Dead inventory, once valued at ₤384’000 (approximately US $436,352) experienced a decrease of nearly 50% in just six months and is now at just ₤202’000 (approximately US $229,539).
In addition to spending and inventory reductions, Camlab has seen enormous gains in productivity. What was once a job that consumed every day of the week is now a 10-hour a week process.
Camlab estimates they save approximately 30 hours a week or ₤15’278 per year. (approximately US$20,677) per year.
Camlab achieved full ROI in February 2010—just six months after implementation.
The most significant challenge CWSSE was facing was with backorders. With up to 50 backorders daily, their sales and their exemplary customer satisfaction was at stake. With over 21,000 SKUs and only one dedicated employee to plan for all inventory it was quickly becoming an impossible task, especially with the rapid growth they were also experiencing.
“We needed a solution to calculate and trend on usage and seasonal patterns which would enable us to stop guessing.” states Brenda Bradley, Controller CWSSE. “We used to have 50 backorders on a daily basis and now we don’t have 10 a month, if that!”
CWSSE is currently running about 150 warehouses including their own distribution channel of 80 box trucks and drivers. Adding Valogix user licenses for each truck was the way to go for CWSSE. Valogix figures the planning and replen-ishment for the delivery and service trucks.
According to Brenda “It took about 6 months before Valogix became cost effective, then about 18 to 20 months to produce ROI, and it eliminated a full-time employee. When we first implemented Valogix we were doing 10M in annual sales and we did 60M last year!”
Ms. Bradley adds “Valogix is easy to use. The ability to sort by vendor, warehouse, item or item type is very helpful when you have multiple warehouse locations; you forget Valogix is running in the background! It’s a huge time saver for us and also for our customers to not be out of product at peak
Our mobile warehouses deliver to 7 states, “To have to rerun or ship something third party is very costly, and the hours and the manpower? Valogix made a huge difference for us.
Manual Counting and guessing
Valogix® Inventory Planner with
SAP Business One