Automated Inventory Management at Maxibuild: A Catalyst for Enhanced Customer Brand Loyalty and Sales Performance

LEAFIO continues to expand its retail optimization expertise across multiple retail verticals. Maxibuild, a distributor and retailer of construction materials, is a clear example of how LEAFIO Inventory Optimization helps increase inventory efficiency in the DIY sector. 

Maxibuild has been in the market since 2006. The company is dedicated to providing access to quality goods from local and global suppliers. Roughly 40% of the building materials industry assortment is available to the Maxibuild customer. The company offers bricks and blocks, drywall, thermal insulation, plumbing and drainage systems, chemicals, gardening equipment, cleaning equipment, flooring, power tools, electrical goods, and other products.

The company's mission is to help customers build dream homes easier, providing access to quality building materials along with the best-in-class service in the industry.

Upon thorough analysis of assortment, distribution, and retail processes, we uncovered that the inventory management system turned out to be the most vulnerable aspect of the supply chain. Inventory management processes were manual, item management methodology was inconsistent, and calculations of target quantities were missing. Key performance indicators analysis was fragmented and did not paint the full picture. Therefore, the company initiated a search for an inventory optimization software provider. 

Project requirement:

• order generation and internal redistribution capabilities;
• warehouse overstock reduction due to limited storage capacity;
• lost sales prevention, in particular, with top seasonal items.

Maxibuild management has selected the LEAFIO Inventory Optimization platform to address identified challenges:

• Automate order generation based on historical data, sales forecasts, planned promotional campaigns, seasonality factors, etc.;
• Access to the inventory management platform and analytics;
• Access to monitoring managers' operations, who are involved in order processing and goods movement;
• Access to the routine tasks scheduling for stocks movement;
• Access to a feedback tool from stores, warehouses, and other departments on task fulfillment.

In addition, throughout the pilot project, the company management acknowledged the tremendous practical benefit of having an analytical report, which signals surpluses and shortages in warehouses and enables the rapid movement of goods, ensuring optimal sales and store capacity.

LEAFIO's Inventory Optimization has helped progress significantly over the last year: 

• The role of Maxibuild managers has been redefined by automating the order placement process, which has enhanced customer brand loyalty;
• the average overstock indicator in warehouses decreased by 39%;
• the average daily goods turnover was reduced by almost 42%. Before the implementation of the LEAFIO Inventory Optimization, it used to take 43 days, and based on the first year of implementation outcomes, the turnover period was decreased to 25 days;
• lost sales decreased by 78%.

"We are extremely comfortable with the LEAFIO Inventory Optimization, not only because the product met our critical requirements to troubleshoot inventory optimization along with the debugging methodology and the high-standard platform functionality, but also owing to the great awareness of the LEAFIO expert team of all inventory management processes in our company, which we experienced both at the stage of implementation and training, and with the post-implementation support. We also appreciate the ease of communication with the vendor's technical support and the profound and professional advice and assistance provided," notes Oleg Sakal, the Head of the General Construction Department of Maxibuild.