ELECTRA SWEDEN AB
Founded
1948
Industry
Consumer electronics
Revenue
1,9 billion SEK/year
Employees
120
Listed in 2009
THE PROBLEM
As a purchasing manager at Electra, you have a lot to keep track of. Purchasing Director Michael Siklund can attest that. With a stock value of between SEK 100 and 200 million, and an activity that includes warehousing and logistics with a focus on third-party logistics, on the other hand wholesale trade and distribution of consumer electronics and furniture, a large part of the days is filled with thoughts and planning of the warehouse .
As the business increased in both sales and scope, it became clear to Michael that the work with purchasing was not carried out in an optimal way.
- We had six buyers, who all to some extent had their own way of thinking, planning and reasoning about the purchasing. I felt that we needed better support in an environment that was constantly growing in the number of suppliers and items.
Electra wanted to find a solution that could help them gain better control of the business, through more efficient processes and optimization of purchasing and warehousing.
THE SOLUTION
In the hunt for the future supplier of a great system solution, a number of systems and platforms was evaluated - many of which belonged to large and well-established companies. In the end, the lot fell on PromoSoft and SOLO.
- We needed to get a better idea of what we were going to buy and when, and we wanted to do it with as little manpower as possible. PromoSoft presented a solution that would help us reduce inventory and increase stock turnover What became crucial was that PromoSoft was responsive and had the opportunity to adapt their operations and its system to our business – if we had decided on one of the competing giants, it would have been the opposite, we had been forced to adapt our business to their system.
One advantage, says Michael, is that PromoSoft is a Swedish company.
- Then you as a customer do not just become one in the crowd, and you have a greater opportunity to influence. We have been involved and got the possibility to affect corrections and changes along the way - all to get the most out of the solution. Nevertheless, SOLO is not more expensive than the big solutions.
THE VALUE SOLO ADDS
Since Electra introduced SOLO, the work has become both faster and smoother for buyers, which has saved valuable working time.
- Thanks to the reports that are included, we have gained better control of the size of the inventory and the inventory turnover rate. The whole of the system's functions and reports has made us better at ordering things at the right time and in the right quantity. Our processes have become more efficient, and buyers are very positive about the system, as it facilitates their work.
In 2020, Electra reduced its average inventory by 3.6% while sales increased by 10.1%.
- It is difficult to know exactly what is caused by what, but it is quite clear that SOLO is part of the explanation behind these fantastic figures.
Michael also talks warmly about the Business Review included in the collaboration; at regular intervals, PromoSoft comes out to Electra and conducts a review, with the aim of developing and optimizing the use of the system, and ensuring user competence in a smooth and good way.
- This Business Reviews are valuable to us as users, at the same time as they help PromoSoft to plan and execute its work.