ASEA improves inventory accuracy with SnapFulfil's cloud WMS
In 2013, fast growing direct sales business, ASEA, took the strategic decision to bring its warehousing and fulfillment operation in house from a third-party logistics provider, alongside its world class manufacturing operations. To support their strategy, the company required a warehouse management system that would provide visibility and control across its raw materials, production, sales orders and finished goods inventories.
Historically, ASEA's ERP system did not have visibility to either production or inventory on hand, making it impossible to properly balance supply with demand.
Scott Aldred, ASEA's Senior VP of Global Operations says: "As part of our new strategic direction, we required a warehouse management system that could support our rapid growth, sustain a low total cost of ownership and support both our manufacturing raw material inventory as well as finished goods inventory for order fulfillment.
"We also required a system that would give us complete traceability all the way from raw materials, through finished product to shipment to the customer."
David Jenson, ASEA's Director of Global Logistics & Inventory says: "SnapFulfil offered all the functionality we were looking for, with no upfront costs. They were also able to clearly demonstrate their ability to work with us to meet our specific requirements, including the addition of production components to support our manufacturing operations."
Since implementing SnapFulfil in early 2014, ASEA has continued to experience exponential growth with production and order volumes increasing by 10%. At the same time:
- Inventory carrying cost has reduced by around 15%
- Inventory accuracy has increased by more than 20%
David Jenson says: "Better inventory accuracy and visibility have allowed us to be leaner and cut carrying cost. The discipline imposed by SnapFulfil provides for better organization and we are now working smarter than before!"
"SnapFulfil has also helped us to secure certifications from NSF International, the FDA in the US and TGA in Australia."
In order to continue to drive efficiencies in its business, ASEA is investing heavily in IT and plans to introduce a new ERP/MRP system which will be fully interfaced with SnapFulfil.
ASEA also plans to increase its manufacturing and fulfillment facilities by an additional 10,000 sq ft, using SnapFulfil to support additional parcel fulfillment and shipping operations, along with the introduction of further new products during 2016.