Aubuchon continues to improve KPIs and achieve business results with 4R One Predictive Engine to better manage inventory and purchasing
Aubuchon Hardware struggled with inventory issues due to:
- A distribution model that didn’t support its growth plans
- Buyers who relied on history, guessing and gut-feel for orders
- The use of spreadsheets and a manual, time consuming, process for inventory planning
These issues resulted in over $15M in excess inventory, and inventory in the wrong locations.
“We needed something that wasn’t reliant on human intervention, or remembering what they were buying, or what was bought at each store. We needed something that caught everything.”
– Jared Brown, Aubuchon, Director of Business Intelligence
Although the Aubuchon team had technical knowledge, they sought a service-oriented partner to tap into inventory planning and analytical expertise.
After contracting for outside assistance and embracing Planning as a Service resources, the Aubuchon team:
- No longer plans and manages two million SKU store combinations using spreadsheets and rudimentary analytical models
- Spends 90-minutes per week on inventory management versus 25-30 hours per week running spreadsheets, adjusting models, and spot-checking inventory
- Removed the burden of walking the aisles to count inventory on the shelves and pegs by delivering the right inventory, in the right quantities to each location
The real business results achieved, in a little more than a year:
- Identified and “burned-off” $5 million in excess inventory
- Realized $2 million in “missed” sales
- Improved net profits by 50%
“…we’ve liquidated about $3.8 million of excess inventory acquired during the pandemic and we’re almost done. I think our next step is implementing more advanced opportunities, like assortment planning and promotional buying.”
– Jared Brown, Aubuchon, Director of Business Intelligence
Read or listen to the entire Aubuchon story ⬇️