The inventory optimization solution reduced costs from $22 million to $8 million.
Founded by Ivan Stein, Garry Seehoff, and Abraham Sacks in 1995, Evriholder began with tie and belt organizers and became a massive retail hit. Encouraged by the success of their first product line, the founder started forming relationships with inventors and product developers across the world. The company expanded by offering more innovative product solutions.
Of course, achieving the desired expansion isn’t always as easy. It’s a tedious task with loads of challenges along the way. Evriholder was no exception; with almost 9000 SKUs across different industries, their essential improvement area was streamlining and perfecting the forecasting methods. Their products were innovative, but they needed an equally innovative solution to reach the masses and acquire more customers. That’s when Eileen joined the company.
Eileen was able to find significant loopholes, and she started asking tough questions. With assistance from Avercast software, she started cutting the excess. Within no time, she was able to bring the total number of SKUs from 9000 to 1500. This excess trimming ensured the inventory cost went down from $ 22 million to $ 8 million. Together, Eileen and Avercast helped Evriholder free up $ 14 million in inventory, which was later used in hiring more employees, marketing, and other areas of the company.
Eileen said with the help of Avercast, she was able to find that a lot of SKUs are not being sold and are just resting and getting piled up in inventory. She defined the steps, “You need to lower the water to see where the rocks are.” With the huge reduction in inventory, Evriholder became more efficient with fewer resources, saved more money, and worked effectively with 70 fewer suppliers.
When asked about the significant move, Eileen said with the help of Avercast, she was able to find that a lot of SKUs are not being sold and are just resting and getting piled up in inventory. She defined the steps, “You need to lower the water to see where the rocks are.” With the huge reduction in inventory, Evriholder became more efficient with fewer resources, saved more money, and worked effectively with 70 fewer suppliers.
Evirholder implemented the software in 2012 and witnessed massive improvement in their forecast’s accuracy. The forecast accuracy, which was around 40%-50% after implementation, shot up to 70%. Simultaneously, Avercast has also increased its inventory turnover ratio.
Aside from the apparent benefits, Eileen remarked, “Avercast has enhanced visibility and scope. It has allowed the team to collaborate and plan together with the sole focus on one forecast only”. To those considering Avercast, Eileen suggests, “the system gives you the efficiency and the technology to replace the multiple spreadsheets.”
Schedule a demo and witness the difference Avercast can make for your company.