Optimizing the supply chain has allowed us to create a more efficient and sustainable operation - " Floren Dominguez "
Background:
Kave Home is a leading omnichannel retailer specializing in designer furniture, operating in over 80 countries. Kave Home, established in 2013 as a pure e-commerce business, has grown to include 120 physical points of sale. With a strong commitment to sustainability, Kave Home recognized Slimstock as the ideal partner to optimize its supply chain operations amidst rapid expansion.
Challenges:
As Kave Home experienced accelerated growth, the company faced significant challenges, including unmanageable inventory levels, increasing product obsolescence, rising supply chain costs, and the need for additional external storage. These issues threatened to disrupt the company's operations and hinder its ability to maintain high service levels.
Solution:
To address these challenges, Kave Home implemented Slimstock’s award-winning supply chain platform, Slim4. This strategic move aimed to optimize inventory management, reduce supply chain costs, and enhance operational efficiency.
Results:
Reduced inventory levels:
- Kave Home achieved a 40% reduction in inventory levels while increasing its assortment size by 7%.
- Despite the stock reduction, the company saw a 26% increase in turnover, maintaining high service levels.
- Specifically, in the furniture product category, stock levels were cut by 22%, sales increased by 30%, and the product range expanded by 17.5%.
Operational Efficiency and Sustainability:
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Slim4’s implementation led to a more efficient and sustainable supply chain, significantly reducing the obsolescence rate.
- The platform enabled better collaboration with suppliers, allowing dynamic adjustments to orders based on actual sales versus forecasted demand.
- Accurate demand forecasting helped limit unnecessary transport, reducing imported volume by 14% and minimizing packaging and external warehouse needs.
- Overall, these improvements contributed to a 15% reduction in Kave Home’s carbon footprint.
Impact on Business:
Floren Domínguez highlights the critical role of Slim4 in managing the bulky nature of furniture products, which require substantial warehouse space. Keeping these stock levels under control was essential for maintaining business growth. The success of Slim4’s implementation is evident in the enhanced efficiency and sustainability of Kave Home’s supply chain.
Commitment to Sustainability:
Sustainability is at the heart of Kave Home’s operations, with a focus on designing pieces from recycled and recyclable materials under the principles of circularity. Slimstock's partnership has furthered this commitment by ensuring a sustainable supply chain, aligning with Kave Home’s core values.
في الختام:
With Slim4, Kave Home has not only optimized its supply chain but also reinforced its sustainability efforts. The collaboration with Slimstock has positioned Kave Home for continued growth, improved efficiency, and a reduced environmental impact, setting a benchmark for the industry.