Automated purchasing process
Improved stock management
Integration with Lightspeed
Challenge to control growth
Partywinkel is the story of two friends that started a webshop from an attic room and expanded into a webshop with a fully operational warehouse and 45 employees. Patrick Noij, one of the founders, explains the evolution of their self-made organisation. “We developed everything ourselves. No book could explain how to set up a warehouse, set up a barcoding system and organise purchasing operations. We tried, built and improved everything ourselves. Over time, we got into such a flow of growth that we wondered: ‘how can we control this?’. ”
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Accept challenges, make decisions
“Running the business became so time-intensive that we started looking for solutions to make our operations more efficient. We were still working with the very static min/max purchasing strategy. That was not ideal for our cash flow position and stock level. If demand suddenly dropped, we had to deal with big numbers of excess stock.” Patrick and Casper found in Optiply a partner that could solve critical purchasing issues and integrate with their source system Lightspeed.
“Additionally, we decided to outsource our entire logistics to a fulfilment party. That was a tough decision, as we had to say goodbye to 35 people.” Patrick explains that this was necessary to regain a grip on the business. “The way we structured our business was not healthy anymore and slowed down our other activities. The hassle and stress of wanting to do everything ourselves held back the growth and evolution of the company.”
Automation adds efficiency
Adding the automated purchasing solution from Optiply sped up Partywinkels purchasing process. From that point, they could abandon placing purchase orders manually. They abandoned the static min/max purchasing strategy resulting in more control on stock management and an improved cash flow position.
3 Challenges for
- Manual purchasing process
- Static min/max purchasing strategy
- Limited control stock management
“We knew that we had to do things differently and said: surely there is a system that calculates and forecasts purchases for us.”
Growth in Service Level
Because of the collaboration with Optiply, Partywinkel could expand its stock without the risk of excess stock or negative cash flow impact. Following the ABC analysis Optiply uses to categorise the stock, the growth for category A products is the biggest, having more impact on revenue than B and C category products. While the stock level increased, there was also an increase of 92% in revenue. Additionally, Partywinkel reduced lost sales by almost 5%, showing their service levels improved.
Birth of babywinkel.nl
The biggest gain of their decision to integrate automation in their operations is that Patrick and Casper could start with a second webshop: Babywinkel.nl. “We both became a father twice. When we tried to order items for the children’s rooms, it was frustrating that products were unavailable, sold out or delayed. Especially stock-outs were something that frustrated us, as we do not work with back-orders. That triggered us to start with Babywinkel a year ago. We managed to put Partywinkel on its feet and wanted to take on a challenge in a different market.”
3 results of the
- Less time-intensive purchasing process
- More insight into sales figures
- Purchasing tasks are transferable
What Optiply can do for your business?
What our customers typically achieve
80% Less Stockouts
Never miss out on a sale by ensuring you stock the right products.