Herman Pro AV Taps Absolute Value for Inventory Optimization

Herman Pro AV is a provider of professional audiovisual (AV) products, procurement services, and labor resources to systems integrators in the commercial AV and broadcast industries. The company is based in Miramar, FL with distribution centers in Atlanta, GA; Edison, NJ; and Sparks, NV.

As a result of Herman’s innovative programs for their integrators, the company has doubled its growth over the past few years. As the business grew, it became apparent that their internal inventory management processes also needed to grow due to a number of factors:

• Their forecasts were too static 
• They didn’t have the right information to scale their inventory to meet the growing demand
• Service levels were not where they needed to be 
• Key data for vendor minimum discounts and consignment inventory were a challenge to find and manage in their current system 

SOLUTION
Realizing they needed to expand their inventory management capabilities, Herman decided to implement Absolute Value’s Demand Planning system. Demand Planning’s ability to update forecasts dynamically, provide comprehensive inventory visibility, and maximize transfers to reduce operating costs and save on vendor minimums, made it an attractive option. The system’s ability to do collaborative forecasts and run on any ERP system fit Herman's needs.

RESULTS
According to Herman Co-CEO David Wolf, “We used to load all our sales data onto an Excel spreadsheet every month and spend two to three days reviewing the projected forecast and making adjustments. Then we’d load all the data back up into the ERP system. Now Demand Planning does everything for us. We spend just an hour or two a month checking to see whether the system is flagging any exceptions.”

BENEFITS

• Tremendous time savings 
• Greater inventory visibility/scalability 
• Collaborating with customers and vendors 
• Streamlining consignment inventory 
• Resource reallocation 
• Productivity improvements 

“The Demand Planning software offers deep functionality and is very versatile. Equally impressive is the team behind it. The service, support, degree of responsiveness, and genuine interest the Absolute Value team has taken in our company has been outstanding.” – David Wolf, Co-CEO
To learn more, visit the Absolute Value News Room.

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SIGMA Corporation Improves Supply Chain Planning With Absolute Value

SIGMA Corporation, an importer of specialized water products and accessories, recently implemented the SaaS or Cloud version of Absolute Value, enhancing the productivity and inventory management of their Sage MAS 200 ERP solution. Absolute Value has extensive roots in the distribution software industry, with specific strength in Forecasting and Replenishment. With an implementation timeline of less than 30 days, SIGMA rolled out the Absolute Value software solution to help streamline their Supply Chain forecasting and replenishment process.

SIGMA, based in New Jersey, has been in business since 1985. The company's core products are Waterworks pipe fittings and accessories. SIGMA pioneered production of these pipe fittings in China starting in 1985, and since then has steadily grown to be the second largest AWWA pipe fittings supplier in the USA. Because SIGMA imports much of their product from China, they are presented with a supply chain planning challenge every year related to the Chinese New Year when many factories close for the holiday. However, with less than two hours of careful planning in Absolute Value, SIGMA is able to avoid their normal product availability issues during that time.

Mitchell Rona, the VP of Operations for SIGMA, deems Absolute Value an "excellent forecasting and inventory tool. It is yet another way that SIGMA demonstrates its commitment to efficiency, strategic planning, and excellent customer service.”

To read more about the SIGMA implementation, as well as additional white papers and case studies, visit the Absolute Value Newsroom.


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Absolute Value Delivers Double Value to The Corix Group

The Corix Group is a $300 million company made up of three entities: Corix Water Products is a large water and wastewater products distributor; Corix Water Systems fabricates water and wastewater treatment plants; and Corix Utilities develops customized water, wastewater and sustainable energy systems and provides field metering services for gas, water and electrical utilities. This privately held company has over 1,200 employees in 60 locations across North America. Implementing Absolute Value has given more than 40 users company-wide greater access to business intelligence and forecasting for planning, purchasing, and managing their inventory of 1.7 million SKUs across 33 branch locations, for thousands of customers.

1.7 million SKUs are a lot to keep up with, and Absolute Value manages each one separately. The system utilizes 18 forecasting formulas, and uses the Best-Fit forecasting method of “reforecasting” the past for each item, and using the most appropriate forecast formula going forward. As trends for a SKU change, the formula used automatically changes to provide the most accurate forecast. “The more you use the tool, the better it gets. We received value from the day we started using it.“ commented Carol Wozney, Director of Infrastructure Services.

As critical as forecasting is, it is only half of the process of managing inventory. The Absolute Value replenishment process compares the forecast to time phased expected inventory to identify an inventory need with laser-like accuracy. This information is then used along with safety stock and economic calculations to determine the quantity to purchase. The result is a suggested order for each vendor.

“We can track how a recommendation was derived in a visual way, and apply human logic to ensure that it makes sense. Few if any other forecasting and replenishment solutions allow you to do this,” said Bill Palmer, Corix Manager of Special Projects.

To learn more about Absolute Value and read additional case studies and white papers, visit the Absolute Value Newsroom.

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Absolute Value Yields Tremendous Results For Phoenix Mecano

Phoenix Mecano Inc. operates three distinct distribution divisions and associated profit centers in the United States.

Rose+Bopla Enclosures manufactures an extensive line of off-the-shelf enclosures, machine control enclosures, and suspension arm systems. RK Rose+Krieger provides frameworks, linear products, and clamps for another group of customers that use those components to assemble their final products. PMI Dewert, the third division, manufactures a full range of single and dual linear actuators, handsets and control systems used in motion furniture(beds, tables, chairs), medical, long-term care, physical therapy, and industrial applications.

Each division has its own unique customers with different business and software needs. Because of long lead times when purchasing from sister companies overseas, customers were often left dissatisfied due to insufficient resource planning.

When the collaborative team at Phoenix Mecano determined the current limitations were hindering growth, they identified core problem areas and chose to address them with a software solution from Absolute Value. Like most companies, PM USA saw a decline in their sales during the 2009 global economic downturn, but by using Absolute Value to stock more appropriate inventory, the team was able to take their inventory value down by 35%. Within a few months of the implementation the team was able to realize the additional following benefits:

• Reducing stock inventory part numbers from 4,000 to 2,900 items, while increasing customer satisfaction.
• Eliminating costly off-site storage space, while opening up 30% of their existing warehouse space to be able to re-engineer the formerly congested traffic flow in the warehouse.
• Reducing warehouse staff by 55%.
• Significantly reducing air freight bills, previously caused by not being able to accurately predict key component needs on a timely basis.

Absolute Value has roots in the Distribution Software Industry that are extensive, with specific strength in Forecasting and Replenishment. To read more about the implementation, and learn more about their products, visit the Absolute Value Case Studies section of their website.

The Brown Smith Wallace 2014-15 Distribution and Manufacturing Software Guides are currently available for download. Please contact snelson@bswllc.com for more information about these latest editions.

 

2014 Distribution Software Guide: 

http://track.websiteceo.com/r/160948/www.software4distributors.com/downloads/2014_Distribution_Software_Guide_From_Blog.pdf

 

2014 Manufacturing Software Guide: 

http://track.websiteceo.com/r/160948/www.software4distributors.com/downloads/2014_Manufacturing_Software_Guide_From_Blog.pdf

 

Additional materials: http://www.software4distributors.com/vendor/resources_index.aspx

 

 

 

  

Phoenix Mecano Combines Skill, Teamwork, and Absolute Value for Tremendous Results

Phoenix Mecano Inc., a manufacturer of off-the-shelf enclosures, machine control enclosures, and suspension arm systems, operates three distribution divisions and associated profit centers in the United States. Each of the divisions has its own unique customers with different business and software needs.

Because of long lead times when purchasing from sister companies overseas, customers were left dissatisfied due to insufficient resource planning. Like most companies, PM USA saw a decline in their sales during the 2009 global economic downturn, but remained financially sound. The implementation of Absolute Value's Forecasting and Replinshment System allowed the company to stock more appropriate inventory, and open up available cash.

Absolute Value focuses on the Distribution Software Industry with specific strength in Forecasting and Replenishment. Constructed of both end-user and software vendor experience, the Absolute Value team bridges a dual perspective on the complex needs of today’s distributors. To learn more about the Phonenix Mecano case study, visit the Absolute Value website.

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Educational Webinars on Effective Inventory Management

Absolute Value, makers of Addon Demand Forecasting and Replenishment software are offering a series of free webinars on effective inventory management. Select from topics such as Improving Forecast Accuracy, Effectively Analyzing Your Inventory Investment, First Steps to Achieving Effective Inventory Management, and Executing on the Forecast: Why a More Accurate Forecast Alone Cannot Solve Your Inventory Optimization Needs.

Visit the Absolute Value website to learn more and register.

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