Mercedes Benz CPH has put the pedal to the metal

Mercedes-Benz CPH sells and maintains cars, vans and lorries from six locations on Zealand. Mercedes-Benz CPH is the only Danish retailer owned by manufacturer Daimler AG. Here, Project and Warehouse Manager Brian Åkær talks about how ABC Cloud has helped Mercedes-Benz CPH achieve higher profitability.

“Using the analyses from ABC Cloud, we discovered that 4% of our spare parts generate nearly 60% of our revenue. It really was an eye-opener for us,” says Project and Warehouse Manager Brian Aakær.

“At the same time, the analyses showed that we had too much non-marketable inventory and excessive inventory value. On our high movers, for example, we had a large overstock of 90 days. But our goods are delivered from Germany every day, so there was no need to have that. The analyses from ABC Cloud have made this visible to us as an organisation. We wanted to do something about it, without it hurting our customers. And for this we use the checklist feature in ABC Cloud in our work with out-of-stock items, return parts and nonmarketable items.”

ABC Cloud replaces Excel

“We used to use Excel to create an overview. Doing the things we can do now was a jungle. That is probably also why we have had such good results so quickly. We lacked an overview and acted on gut feelings. With these new initiatives, we have reduced our inventory value of cars by DKK 3 million since November 2018. We have done this because we have an overview and are able to navigate the fine line between cutting down on inventory and knowing when to stop.”

Results in 3 months

  • Reduced our inventory value of cars by DKK 3 million since November 2018
  • The same high service level
  • Better overview and balance between inventory levels and service level
  • Increased efficiency and less work in Excel.

Click the image below to read the full interview with Project and Warehouse Manager Brian Aakær.