helping KE KELIT
The Dutch distributor of Kekelit, an Austrian family business developing and manufacturing plastic and metal pipe systems, wanted to improve the service to its current customers and expand its market share. Scale-Up Supply has successfully supported the rapid sales increase, decreasing workload and improving customer service on behalf of this Dutch distributor.
Initial challenges with direct factory supply
At the start of the project, Dutch customers were being supplied directly from the factory, which, while minimizing warehouse costs, led to longer lead times, higher minimum order quantities, and more complex order management.
Plumbers and installation companies use KE KELIT's pipes and fittings to build custom systems for water distribution in buildings, often requiring different products for each installation. Beyond price and quality, customers highly value the availability of both slow- and fast-moving pipes and fittings.
Understanding these market needs, Scale-Up Supply recommended establishing an inventory closer to the Dutch market, stocking the items most in demand by wholesalers. The strategy was built around three key goals:
Deliver products within five working days
Achieve 98% availability for wholesale items
Maintain a yearly inventory turnover ratio of 4 (the number of times inventory is sold and replaced during a given accounting period)
Implementing a new supply chain approach
The distributor shared a list of wholesale inventory items, and it was agreed to implement a two-week ordering cycle. The distributor would place orders every two weeks, and KE KELIT would deliver within 12 days. Additionally, it was agreed that the distributor would provide a three-month sales forecast at the start of the month.
A supply planning tool was developed to streamline the process. The tool calculated order quantities using parameters like safety stock and order cycles and forecasted sales using historical data via API integration. This system helped balance inventory while supporting the rapid increase in sales.
Demand was unpredictable during the initial months, with sales growing and new wholesalers becoming customers. To address this, Scale-Up Supply worked closely with KE KELIT and the import agency to manage the supply chain, ensuring clear communication between customers, the sales team, and KE KELIT. This helped prioritize the right orders and build trust with customers.
Stabilizing sales and inventory
After six months, sales and inventory levels stabilized. Availability improved, and the workload decreased. Scale-Up Supply introduced a KPI framework to track inventory turnover, availability, and delivery performance, including tools like a tracker for availability and stock on hand.
Having successfully implemented these improvements, Scale-Up Supply transitioned operational management of the supply chain to a supply chain associate.
Scale-Up Supply currently provides consultancy services to refine KE KELIT's supply chain processes where necessary.
