Inventory and Purchasing Optimization
Service level and ability to deliver
Tura Scandinavia AB is a leading Nordic general agent and distributor of products and accessories in the areas of audio, video, computer, gaming, photography, home and leisure, mobile telephony and GPS. The strategy of the company is to offer both suppliers and customers a holistic model that includes strong brands, efficient distribution, competitive prices and a high level of service.
Facts in Brief:
A family-owned wholesale business in Kungsbacka with a rapidly growing demand for headphones, batteries, memory cards, power cords and MP3 players.
The sales volume increased from SEK 56 million in 2009 to SEK 968 million in 2009.
SOLO is an important cog in the company’s continued expansion.
The company’s goals include a high level of service.
The right quantity of the right product delivered on the right day.
“We need to continuously improve our relations with customers, and justify our position in the value chain,” declares Peter Olsson, vice president and purchasing and product director.
“Logistics is not just about speed. If we tell our customers that they will have their goods in three days, three days it is. Efficient logistics solutions are about delivering the right quantity of the right product on the right day, which means a high level of service.”
This is where SOLO by PromoSoft enters the picture.
“SOLO has helped us maintain the correct inventory value thanks to the fact that we can manage 80 percent of all our products in SOLO.
We have better control over things, and can maintain the right level of service, including having inventory levels that vary depending of season and demand. In the case of certain items, however, such as fashion brands for the 15-25 year old target group, inventory management is virtually impossible. Products in this category are extremely volatile. Demand can show an enormous increase one day, and go flat a week later.
We choose PromoSoft as our business partner after a good deal of deliberation. After all, there are other major competitors.”
“We want to be a ‘little big company,’ qualified to be publicly traded, and yet not listed on an exchange. That’s one reason why we prefer working with smaller, dedicated partners that will see us as an important customer.
PromoSoft showed us a good solution, and let us return with feedback and ideas. This meant that we were able to raise the service level we offer our customers,” Peter Olsson explains.
Our brain is in Kungsbacka, and our heart is in Nässjö.
Tura Scandinavia has its main office in Kungsbacka, but the company’s heart is in Nässjö, where it has an 18,000 m2 distribution center that supplies goods to the entire Nordic area. Tura’s customers are companies like Elgiganten, Mediamarkt, Siba, Expert, Onoff, Coop and Ica.
Tura Scandinavia was started in 1978, and is now under the leadership Stefan Eriksson, part of the second generation of this family business. At first the company dealt almost exclusively with photography items, but gradually expanded its range to about 20,000 electronics products in areas such as audio, computers, video, photography, mobile telephony, gaming, home and hobby.
However, Tura Scandinavia, which has won several Dagens Industri Gasell awards, would not have grown this fast if it didn’t have a conscious strategy for creating more additional value than “just” fast, accurate and efficient distribution.
We divide our model into three parts: good, better, best. This means, for example, that we are not satisfied offering one brand of earphones, but instead try to add additional brands to our selection.
Some customers want Koss earphones for sound quality, while teenagers prefer Scullcandy because it’s trendy. We can offer our customers and retailers what the end customers want to have. We read the market, check trends, and make predictions regarding products we believe will succeed,” explains Peter Olsson.
“We don’t succeed every time, but pretty close to that”