The challenge
Nordic Tyre Group faced frequent inventory stockouts across all product categories and warehouses - frustrated customers turned to competitors and the scale of the problem was unknown.
Empty shelves meant lost sales
Nordic Tyre Group - a leading independent tyre distributor across the Nordic and Baltic markets - faced frequent inventory stockouts across all product categories and warehouses. This led to substantial lost sales, as frustrated customers turned to competitors.
Inventory management didn't predict demand
Existing inventory management processes were inefficient and failed to predict demand accurately. Every empty shelf was a missed order, and replenishment arrived at the wrong time.
The real scale of the problem was unknown
The situation needed a quick fix, but first the real scale of the problem had to be understood. Without a clear data picture, there was no way to know where to invest first.
What we built
We started from data - analysed history in depth and built a strategy based on value-driven inventory management and Theory of Constraints (ToC) replenishment.
Results
The analysis revealed enormous potential: millions of euros in lost sales could be recovered.
Nordic Tyre Group could capture up to 65% of revenue previously lost due to stockouts by ensuring tyres don't run out at the wrong moment.
High-demand categories could see revenue grow by 75% with better inventory management.
Slower-moving categories show a 54% revenue increase opportunity.
Nordic Tyre Group received a clear plan to solve the problem - guidance on what partner is needed for implementing the optimized inventory system and how to make the selection.
