CASE STUDY

Medshop sees a 14% increase in product availability, 38% increase in sales with only a 16% increase in investment

Medshop is a leading provider of medical supplies to the Australian and Pacific Island region. With a number of warehouses and thousands of products, ranging from low value consumables through to high-end hospital diagnostic equipment, Medshop strives to satisfy customer demands without overstocking.

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Company

Medshop

Location

Australia

Industry

Medical Distributor

ERP

Sage ERP X3

Challenge

Inconsistent demand planning and excess stock.

Solution

Netstock integrated with Sage ERP X3.

Result

Increased sales, faster stock turns and reduced excess stock.

Safety stock is key

Achieving the holy grail of inventory management – the magical balance of minimal inventory while meeting variable customer demand in the face of unreliable supply – is only possible with optimal safety stock levels. “By monitoring how well we forecast a product and how reliable the supply is, Netstock dynamically adjusts the level of safety stock required,” explains Steven Cumper, Director.

“For items that are more likely to end up with excess, Netstock shrinks the safety stock away, while safety stock is increased for items with a risk of running out of stock,” Steven continues. Netstock’s ability to compute optimal safety stock levels has proven valuable for Medshop Australia.

Within 6 months, there was a 14% increase in product availability and a 38% increase in sales with just a 16% increase in focused investment.

Steven Cumper, Director and Co-founder

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The ultimate guide to inventory management

Learn about the six fundamental principles of inventory optimization that enable you to make informed decisions that balance current demand with future need.

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