Building Effective and Transparent Inventory Management: The Success of Antoshka Kids’ Chain

With its 42 stores selling anything and everything from toys to clothing, baby food, and hygiene products, Antoshka certainly is a major chain that also runs a large online store. As part of the RedHead Family corporation (which also includes multi-brand Daniel Boutique and mono-brand boutiques of exclusive children's clothing brands such as Armani Junior, Miss Blumarine, and Monnalisa), the chain’s primary goal is to provide a wide range of products to children from newborns to teenagers. Antoshka has been in the market for many years and has always strived to make shopping comfortable. To further that goal, Antoshka decided to optimize its operations and turned to LEAFIO. 

Before integrating LEAFIO Inventory Optimization, Antoshka's chain of stores faced a number of problems in the inventory management process:

• insufficiently transparent ordering indicators. Managers often ended up ordering too much or too little, which negatively affected the stock turnover;
• floating delivery schedules, which complicated inventory planning and led to stock-outs in stores;
• lack of graphs, reports,  and easy visualization of indicators. The lack of a clear overview of the situation made it difficult to analyze stocks and identify problem areas.

However, the main reason for implementing the LEAFIO Inventory Optimization system was the desire to improve inventory management indicators (in particular, product turnover) and reduce the "frozen" funds invested in inventory.

The decision to integrate LEAFIO Inventory Optimization was initiated by one of Antoshka's top managers, who had already had a positive experience with LEAFIO. 

At the beginning of the implementation, representatives of the Antoshka network set several objectives:

• automation of the inventory management process to minimize human errors;
• reduction of overstocks;
• minimization of lost sales and increase in the availability of goods;
• development of a methodology and creating a tool for systematic analysis of key performance indicators in inventory management.

During the implementation period, data exchange between LEAFIO Inventory Optimization and the retailer's system was set up, the product range was connected to the LEAFIO system, and training for the network's specialists was conducted.

The retailer's project manager, IT specialists, and procurement specialists were all actively involved in the implementation process. The whole process was carefully planned and mindful of the partners' needs and requirements.

Another problem that turned up was the problem of accounting for goods "in transit.” It was solved right in the implementation stage. The data on such goods is now correctly considered when placing orders. Additionally, we implemented the ability to display a virtual warehouse (distribution warehouse) in the system at the same time. It made it possible to properly account for the balance of goods when ordering.

So far, the implementation of the LEAFIO Inventory Optimization system throughout the  Antoshka chain has led to significant process improvements and brought clear qualitative and quantitative results.

Increased turnover and availability

The system has helped to increase the turnover of goods and improve their availability. The display of these indicators through reports allows the retailer to identify problem areas in the assortment matrix, provide recommendations on product placement and optimize the quantity on the shelves. Furthermore,  the information is now also used to plan promotions and distribute goods across the network.

A new way to calculate the depth of the assortment matrix

The LEAFIO Inventory Optimization system has changed the way the depth of the assortment matrix is determined at Antoshka. The company now uses the "safety buffer" indicator instead of calculations that were not transparent and caused misunderstandings. It is not based on sales but on the number of products on the shelf, which makes the process more transparent and all staff can navigate it easily.

Regular and predictable order volumes

The system eliminated the need to limit purchases at the end of the month. Previously, the network used to set monthly purchase limits but these were regularly exceeded by the end of the month. Now, all orders are calculated evenly and predictably, avoiding  excess inventory and the need for adjustments.

Additional achievements:

• Only three specialists are needed in the procurement department owing to  the automation of processes and the reduction of the need for manual calculations.
• The system integrates 45 storage locations with an active ordering schedule.
• ABM Inventory includes online orders, which improves order accuracy and reduces customer service deficiencies.
• Permanent delivery schedules have been introduced to help keep processes in check.
• Campaigns are now displayed in the system according to promo mechanics which improves the calculation of average sales;
• The system is used to determine ADU (Average Daily Usage) to analyze current demand and to order new products.
• With the help of reports, it is possible to identify overstocks and redistribute them across other stores.

Pilot categories were selected to launch LEAFIO Inventory Optimization: hygiene, baby food, and nutrition. From February to July 2023, the goods in these categories were fully managed by the system (96% of the ordering and distribution tasks were automated). Even at such an early stage, LEAFIO showed the first convincing results:

General indicators

Availability increased by 5%.

Sales increased by 17%.

Turnover time decreased by 18% (from 59 to 50 days)

Hygiene

Availability increased by 2%.

Sales increased by 23%.

Turnover time decreased by 19% (from 71 to 59 days)

Baby food

Average stocks decreased by 11%.

Availability increased by 1%.

Sales increased by 12%.

Turnover time decreased by 24% (from 46 to 37 days)

Nutrition

Availability increased by 23%.

Sales increased by 9%.

Turnover time decreased by 10% (from 66 to 60 days)

"The integration of ABM Inventory into Antoshka's network has led to a significant increase in sales and improved inventory management. Changes in business processes allowed us to optimize the work of the purchasing department, make order calculation and campaign planning more accurate. Thanks to the system, our specialists can analyze the results more efficiently and respond to problematic issues in a timely manner," shared the Head of Purchasing at Antoshka.

The implementation of LEAFIO’s systems at Antoshka has shown tremendous results so far and we are all looking forward to what’s next in store. As always, LEAFIO is committed to revolutionizing inventory management in all its aspects in the long term so get in touch with our team to see how we can help your business achieve greater efficiency as well.