Results
- 80% reduction in order processing time - decreased from 1-1.5 hours per order to just 10-15 minutes
- Increased product range without growth in non-moving stock
- Fully automated inventory management activities - the entire 40,000+ SKU range is now ordered through the system
- Simplified analysis across 42 branches thanks to warehouse hierarchy
- Staff spend less time on manual data processing
Company
Belagro, a major supplier of machinery and equipment for all agricultural sectors, has been a prominent presence in the market for 23 years, offering over 3,000 units of machinery, a diverse range of more than 40,000 spare part SKUs, and sourcing from over 500 suppliers. With a robust network of 42 branches across four countries, serving 50,000 clients in 30 countries, Belagro has been utilizing Forecast NOW! since 2014.
Inventory Management Specifics
The demand for spare parts for vehicles and machinery is considered rare and is poorly predictable by classical methods. The sale of spare parts for agricultural machinery is characterized by even rarer demand, which significantly complicates the task. In addition, this type of product is highly susceptible to seasonality.
Challenge
In 2014, as part of the business process optimization at Belagro, it was decided to implement a specialized system for the purchasing department. The company used to prepare orders manually with the ERP 1C system. This process was quite time-consuming. It took 1-1.5 hours to prepare a single order. When choosing a specialized system, the company considered three options. Ultimately, the choice fell on Forecast NOW! due to its ready-made solution with refined functionality and high order processing speed.
Solution
In June 2014, the company initiated the implementation of the Forecast NOW! system. The process of configuration and staff training lasted until February 2015. Such a long period was due to the specifics of the goods and a large number of branches.
“Implementation proceeded gradually. We began with one warehouse and manufacturer, experimented with settings, and learned how the system operates. We looked at how the program makes calculations and what results it gives. We needed to understand how the system works, why it provides precisely these figures, and to explain all this to users so that they don't accidentally click on buttons but understand the operating principles. This entire process lasted until February 2015.” - Deputy Director of Procurement for Process Management.
“This phased approach to implementation allowed for a smooth transition to using the program—configuring Forecast NOW! to align with Belagro's business logic, building confidence in the program's calculations, and then scaling the use of the system across the entire network.” - Head of Forecast NOW! Implementation Department.
In February 2015, Belagro fully switched to processing its entire warehouse inventory through Forecast NOW. The system generates orders and distributes them across the branch network automatically. Currently, the company operates 42 branches and manages ten employees in the procurement department.
Benefit
- The warehouse inventory expanded without an increase in non-moving stock. Analyzing products, especially those with rare demand, manually was quite challenging, and managers avoided purchasing them, fearing the accumulation of dead stock.
- Fully automated inventory management activities, the entire warehouse range is ordered using Forecast NOW!
- Significant reduction in the statistical data processing for all warehouses thanks to the warehouse hierarchy utilized in Forecast NOW. The system performs sales analytics quickly within a short timeframe.
- The order preparation time has been reduced from 1-1.5 hours to 10-15 minutes.
“Using Forecast NOW! has significantly eased our workload. Employees now spend much less time on the meticulous preparation of orders, allowing them more time for communication with suppliers and other important tasks. The technical support is top-notch, with all questions and issues discussed and resolved promptly." - Deputy Director of Procurement for Process Management.
