Successful Companies
Below are some small examples of successful companies and results that they achieved after implemented the system into their companies:
“Inventory reduced by 55%, more than 1.3 million EURs!!!”
“Veresen is the largest distributor in Kirovohrad district in Ukraine. The product portfolio consists of more than 2500 SKU divided to alcohol, tobacco, gastronomy and confectionery groups.
From central warehouse all products are supplied to 4 regional warehouses and to retail. The annual turnover was more than 50 Million Euro a year, in 2008.
Bottom line results achieved:
- inventory reduced by 55% (more than 1.3 million Euros)
- inventory turns up by 2 times
- overstock reduced by 75% (more than 0.6 million Euros)
- no expected significant sales
down as usual to seasonal trend
Time to result — 7 weeks!"
A full fledge implementation of the TOC distribution model, based on reporting daily consumption, frequent replenishment, and dynamic inventory level adjustment. This logistical modification resulted in an excellent service level of very high availability coupled with low inventory level.
~ Veresen, Ukraine
“Our Profit Went From (-)1 Million EUR to +5.5 Million EUR!”
“Our sales dramatically increased 45%, inventory decreased 30%, gross margin increased 55%, 300% higher in throughput, and having selling price a little bit higher than competitors with no lost sales — The Best Part is, our profit went from (-)1 Million EUR to +5.5 Million EUR!
This system has saved the company from bankruptcy!”
~ Tegra (building material distributor), Lithuania
“Inventory decreased from 1.6 million EURs to 0.7 million EURs”
“Below are our great achievements:
- surplus (overstock) decreased from 0.6 million EURs to 0.1 million EURs
- sales (during CRISIS! when banks are not helping with credits) stay on the same level - average 0.4 million per week
- inventory turns increased from 2 times per month to 3.5 times
- lost sales reduced 2 time
We gave back 0.6 million EURs to bank, the credit was't renewed, but that didn't have big impact on results.
Time to result — 5 months, from October 2008 till February 2009"
~ FMCG Distributor, Ukraine
“Saved 1 million dollars!”
“90% reduction in inventory in the system, expediting reduced while on-time became virtually 100%! Annual saving in labor cost alone amount to more than 1 million dollars.”
~ The Nielsen Company, United States
“Gross margin increase 135%!”
“Major improvements in entire supply chain of Warren Featherbone. Margins improved by nearly 20%, while improving turns from 2.5 to 4.5. Mercantile’s retail store experienced gross margin increase of 135% and store space decreased 50%.”
~ Warren Featherbone Company (textiles & apparel), United States
“…Jump-Start my Business”
“I used this system to start my charcoal distribution business. The first deal was closed on the first meeting... customer agreed to make payment by direct debit within 3 days upon each replenishment.
On the supplier side, we managed to find a solution for logistic company and get the best deal for small frequent delivery at no extra cost! The supplier even increased the selling price by 10%.
The whole charcoal distribution business was based on fully automated basis. The supplies was based on actual market demand, and the whole chain received money instantly once the customer made payment!”
~ Hotrocks (charcoal distribution), Malaysia
“Inventory went down significantly just a few weeks after project kick off”
“Inventory went down significantly just a few weeks after project kick off while throughput and due date performance went up at the same time.
Inventory turns improved from 3.6 to 5.3. Replenishment just started in August 2002, its first results are promising. The project created a significant competitive edge. The whole management team is looking forward to the next impressive steps with TOC.”
~ Schlly Fiberoptic GmbH (medical equipment), Germany
