VOVA is a European distributor of food and non-food products for the HoReCa segment. The company serves more than 3500 locations. VOVA works with restaurants, bars, cafes, hotels, supermarket chains and supplies goods to production facilities. At the moment, they are expanding its service and offering door-to-door delivery to end consumers.
Before implementing LEAFIO Inventory Optimization
Previously, the company's inventory management was carried out using an ERP system. The decision-making process required 8 category managers and 6 purchasing managers to work with suppliers and create orders.
When placing orders, managers were guided by the quantity of goods offered by the software. The volume of orders was adjusted based on internal reports, i.e., mainly the inventory turnover rate. Such a semi-manual and complicated method failed to prevent human errors, which were understandably common.
Due to the peculiarities of food distribution in HoReCa, if just one product is out of stock, the company loses not only 1–2 SKUs but entire wholesale orders. On the other hand, the accumulation of surpluses and extended sales lead to goods having to remain in the warehouse longer and often end up spoiling.
In addition to wholesale orders for HoReCa, VOVA actively promotes itself in the retail market and is constantly on the lookout for new suppliers of unique products. As a result of expanding its product range and sales channels, the company faced the need to automate the inventory management process.
"High-quality and efficient inventory management is crucial for scaling," said Serge Boyuka, VOVA's Chief Commercial Officer.
After analyzing all the problem areas, 3 key project objectives were identified:
- accelerating the turnover of goods to a level where products are sold faster than the deferred payment period;
- minimizing lost sales;
- controlling the level of supplier service.
The 3 stages of the implementation process
Stage 1
Research of the client's business processes; data exchange between the existing ERP system and LEAFIO Inventory Optimization.
Stage 2
Connecting part of the assortment to the LEAFIO system. There was a need to revise the assortment matrix, including active SKUs. In the process, some parameters were also checked, including the correct and timely display of the movement of goods (including balances and write-offs).
Employee training. Each specialist practiced all aspects of working with the LEAFIO solution (setting parameters, working with indicators, creating and sending orders, etc.) The company's commercial director, IT specialist, and managers who created purchase orders also participated in the training.
Stage 3
Setting up LEAFIO Inventory BI analytics and the general adaptation of the system to VOVA's business needs.
Owing to the well-coordinated communication between the teams, each implementation stage was fast, transparent and, efficient, and as comfortable for employees as possible. Once the implementation was completed, the client was handed over to Customer Success, which will help monitor performance indicators, look for potential further improvement, and help with system upgrades and other pressing inventory management issues.
System integration results
Implementing the LEAFIO solution resulted in a fundamental change in the inventory management approach. Thanks to automation, the process has become transparent and structured, and a convenient reporting system has made it possible to keep an eye on every aspect of the movement of goods.
By integrating LEAFIO Inventory Optimization, the company's business processes have been optimized:
- The turnover of goods has accelerated, and lost sales were minimized.
- The customer service quality was improved by increasing product availability.
- Significant reductions in labor costs were achieved.
- The reliability of suppliers can now be tracked effectively, which has positively impacted the quality of mutual interactions.
A clear delivery schedule and terms of cooperation have been established with all suppliers: from now on, they cannot delay the goods, replace them with other items, or, for example, bring in analog goods without the company's approval.
- Setting up timely accounting of balances and deliveries in the ERP system, which contributes to the proper operation of the system.
- Automatic reporting and collection of in-depth analytics to analyze the company's business processes and make management decisions. Most often, VOVA management uses reports on lost sales and surplus.
- Automation of order creation and a reduction in the number of human errors.
"Thanks to LEAFIO Inventory Optimization, we have significantly reduced the risk of incorrect orders. I can monitor the work of managers and easily detect any misuse or errors. Also, in case of staff rotation, new managers can rely on the system, and I can rest assured that our employees will not make a mistake," shared VOVA's Commercial Director
The numbers speak for themselves
KPI changes recorded after the implementation of LEAFIO Inventory Optimization show:
- 14 % reduction of overstocks
- 55 % increase in sales
- 43.75 % increase in the turnover
- 0.7% reduction in lost sales
- 7 % improved product availability
After the implementation, VOVA continues to scale and increase the business's profitability. With LEAFIO Inventory Optimization, the company now effectively manages the movement of goods at all distribution stages. The flexibility of the system allowed it to be adapted to the company's business needs and the specifics of food delivery in HoReCa, which had been impossible using just semi-manual methods.
