TFL picks ToolsGroup's DPM solution for finished goods inventory reduction

15 Oct '05

2 min read

ToolsGroup, the leading provider of distribution-focused inventory optimization solutions and TFL, a global chemicals producer and distributor, announced that using ToolsGroup's DPM solution, TFL reduced finished goods inventory by more than 22 percent while simultaneously increasing customer service. The solution was seamlessly and easily integrated to TFL's SAP R/3 transactional system.

TFL Italia, a subsidiary the German leather chemicals group TFL, selected ToolsGroup's DPM solution for an aggressive finished goods inventory planning and optimization project systematically addressing its entire production and distribution network. TFL aimed to reduce inventory-holding costs, while maintaining a high level of service.

"DPM has enabled us to lower inventory in a short space of time, without hurting service levels," said Riccardo Jaforte, Logistics Manager for TFL. "In fact, it has actually improved service levels and helped increase sales."

"Additionally, the integration with transactional system, SAP R/3, was achieved as scheduled by ToolsGroup, with relatively minor involvement of own resources," said Luigi Domenella, IT Manager for TFL.

The DPM solution was initially installed in July 2003, and after just one month reduced inventory and increased service levels. Based on this success, TFL recently expanded the implementation with a second DPM implementation. Together, these projects produced an average global service level increaseof 3.5 percentage points, and increased average inventory turns from 90 days to 70 days.

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