Case Study: Lennox achieves 16% improved service levels and 25% higher inventory turns with ToolsGroup

How to face company expansion and growing complexity head on

Lennox, a leading provider of residential heating, cooling and refrigeration solutions, faced rapid North American network expansion and growing complexity — a hub-and-spoke rollout with dozens of shipping and selling locations, 450,000 SKU‑Locations, highly seasonal and lumpy demand, and tens of millions tied up in inventory. To meet aggressive service targets while rebalancing inventory, Lennox selected ToolsGroup and its SO99+ demand forecasting & inventory optimization solution.

ToolsGroup implemented SO99+ (integrated with Lennox’s SAP APO, with Deloitte supporting integration) to set SKU‑Location stocking targets, drive MRP, perform weekly demand sensing and safety‑stock updates, and use machine learning to cluster seasonal demand patterns. As a result, ToolsGroup helped Lennox improve service levels by 16%, increase inventory turns by 25%, and support significant increases in sales and market share.

Lennox

Chris Debergh

Vice President, Supply Chain Logistics