Case Study: Pirtek achieves better inventory mix and cash flow with Demand Solutions Service Level Optimizer

Optimizing Inventory Across a Franchise Network

Pirtek Australia, a provider of fluid transfer solutions with 84 franchises, faced a challenge managing inventory across its network due to extremely long lead times and an inefficient, franchisee-dependent replenishment process. This resulted in a poor inventory mix, high transportation costs, and inconsistent customer service. To address this, Pirtek turned to the Service Level Optimizer from vendor Demand Solutions.

The solution from Demand Solutions used ABC analysis and Pareto’s Principle to automatically calculate optimal stock levels for each franchise based on their sales history and predefined service level targets. This fully automated model provided critical inventory visibility, improved the franchise inventory mix, and delivered better cash flow. The tool was so successful that 51 of 84 franchises adopted it, and Pirtek's Australia headquarters expanded its use to manage forecasting for its South Africa and New Zealand offices.

Pirtek

Ian Kerr

National Supply Chain Manager