Netstock IA weaves an outstanding ROI for Davey Textiles

Davey Textiles used a sales tracking system called MARS and exported sales data into a spreadsheet to calculate their replenishments. “Spreadsheets can work in small businesses that have a few simple SKUs with no other inventory complexities. For a manufacturing company like ours, where we have around 700 SKUs and need to forecast and plan for raw materials, it takes an enormous amount of time, guesswork, and going backward and forward to various departments,” says Murray Tairney, Purchase Manager at Davey Textiles.

Supply chain challenges

Extended lead times have been a significant challenge for Davey Textiles’. Their largest vendor suffered enormous supply challenges and is still delivering orders from 2021. Using Netstock, Davey Textiles can plan around these longer lead times with the app suggesting what additional orders need to be placed to prevent stock-outs. On the flip side, Davey Textiles has also suffered from excess inventory on some items. “Having the ability to classify our stock by value and velocity allows me to focus on the inventory that matters, and we have seen a far more balanced investment in our inventory since implementing Netstock.”

Bill of materials and production scheduling

Netstock has assisted Davey Textiles in their production planning department. With full visibility of sales orders, Davey Textiles can ascertain what machines must run or be set up for the different products. “The BOM functionality in Netstock has also helped me to determine how much yarn we need to order to produce the required end product.”

Netstock’s onboarding and training

Murray did not come from a supply chain background, so before the onboarding process, he took the Netstock certification exam, highlighting the specific gaps in his knowledge. After the onboarding, training and using the Netstock app for a brief period, Murray retook the exam and passed with flying colors. Murray also presented Netstock to the sales team. Even though they aren’t involved in setting policies or forecasting, Netstock impacts their world. Now that they know what information can be obtained from the app, the sales team has been encouraged to log in and look at, for example, excess items or obsolete stock. They can offer suggestions on what promotions to run to balance that out.

Davey Textiles’ return on investment

“When we started with Netstock in January 2022, we had $3,8 million in surplus orders. Eleven months later, I reduced that to under $1 million on 19 items. Additionally, our customer fill rate was 89.4%; we currently provide a 95% fill rate. We have been delighted, not only with the capabilities of the product but with the Netstock team as a whole,” concludes Murray.