Retailer rapidly improves Cash Flow with Softvision Suite
Within 9 month of implementing, active inventory has come down more than 20%
FlagHouse Inc., is a premier global source of quality equipment serving physical education, recreation and special needs therapies through catalog and e-commerce channels. A unique family run company priding itself in enabling physical activity, learning and play—to make the world more accessible and rewarding for everyone, regardless of age or ability.
Working with a small purchasing staff and dealing with the retirement of their long time purchasing manager, FlagHouse realized it was time to automate, centralize, and streamline their multichannel inventory and operations into a single platform. Specifically, they were looking for a solution to reduce inventory levels by identifying overstock items, and improve the purchasing process to prevent overbuying in the future.
FlagHouse began their search for the ideal solution which lead them to Softvision’s Merchandising Suite. In the beginning of February 2017, FlagHouse implemented Softvision’s Automated Forecasting, Inventory Planning, and Suggested Purchase Order solutions. Within 9 months of implementing, their active inventory came down $1 million dollars (more than 20%) since its peak in mid-February. In addition, inventory was $270K less than where it was that same time last year. Prior to the implementation inventory had been growing steadily, especially during the 4th quarter of 2016.
FlagHouse has no doubts that the implementation of Softvision’s Suite has had a significant and positive impact on cash flow, operational efficiency, and the customer experience. They are extremely pleased with the results and to see such a rapid return on investment.
“We expect the much-improved inventory trends of 2017 vs. 2016 to continue as we eat off old inventory, and maintain a better balance of what actually sells.” Doug Carmel, COO
The purchasing staff at FlagHouse has embraced the new system taking advantage of Softvision’s knowledgeable Customer Success Consultants to leverage the system’s full functionality and implementation of best practices. Softvision and FlagHouse continue to grow their strong partnership to help achieve performance improvements and meet operational goals.
“The implementation of Softvision’s Merchandising Solutions gives me a tremendous amount of hope that we will be able to achieve our inventory-related initiatives for 2018 even as we raise the bar.” Doug Carmel, COO