“Optiply is my ‘gatekeeper’ so I can confidently invest in products.”

NRG Fitness – what you will read in this case:

• Active in the fitness sector for 30 years
• Operational on both the B2B and the B2C market
• 2023 is the year of optimisation for NRG Fitness
• Business focus on reducing inventory and increasing product availability

“Everyone is fitness minded”

David, who has been part of NRG Fitness for four years, has seen his role within the company change. “I still manage a few accounts, but most of my time is spent purchasing and optimising our supply chain.” David continues: “We are a relatively small team of ten employees and all fitness minded; that helps me in my role as a purchaser, for example, if I want to introduce a new product.”

“NRG Fitness focuses on fitness and wellness equipment in the premium segment. For example, we supply to a fixed group of dealers who help consumers with their choice at home. But we also help our dealers to offer the best products for personal trainers, companies and hotels. We produce ourselves but also manage 37 brands as a distributor for the Benelux and have approximately 2000 products within our growing range. Because we serve both B2B and B2C customers, we supply a wide range. That is a blessing but also challenges our supply chain management.”

“A challenge to keep our supply chain manageable”

David explains: “Especially during the Covid-19 pandemic, our range has grown rapidly. We can select the most interesting products because we are not tied to a brand or specific supplier. We are active in many markets, which offers many opportunities, but sometimes makes it challenging to keep the entire supply chain manageable.”

“Many of the challenges we face today arose during the pandemic. Due to the lockdowns, a huge increase in exercise equipment demand made our sales explode. Coincidentally, we had just signed for a larger warehouse with three times as much warehouse space. But even this space turned out to be too small during the pandemic.”

Thanks to automation, NRG Fitness managed to scale up processes quickly. Still, one of the systems they needed was a purchasing tool. And that became more apparent as sales declined at the same time the stagnant supply chain started to recover. David: “Demand decreased, but what remained was an overcrowded warehouse. That was the trigger for us to start optimising things and to start with Optiply.”

“Choosing a data-driven approach”

“Starting with Optiply was choosing a data-driven way of working. More visibility, with the aim of getting our supply chain under control.” David sees a change in NRG Fitness’ inventory management. “We look much more critically at our range, especially since we are still getting rid of excess stock. In Optiply terms, we are now much more focused on our most important products. It is a search for balance – also in terms of liquidity – to purchase your most important products and, at the same time, reduce ‘older stock’ that has been in the warehouse for some time.”

“Optiply also enables me to switch more easily between purchasing from a manufacturer or supplier. Certain products are available from both, but there is often a difference in price and lead time. Optiply allows me to easily compare suppliers for the same product without manually calculating. That knowledge has certainly strengthened my negotiating position with my suppliers.”

The same shows the increase in service levels for the A, B and C categories. “The data from our service levels looks very spectacular. This is partly because many products were available again when we started with Optiply. Still, our product availability has increased significantly and is improving monthly.”

“I notice that the algorithm is still learning for us, mainly due to the Covid-19 sales peak. I take Optiply by the hand, look at the data and use my own judgment to determine whether I am following Optiply’s advice without thinking. Optiply is my ‘gatekeeper’. It makes me certain that I can invest in products with a long lead time. In the end, it often involves a lot of money.”