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Palmetto Ace Home Center

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Palmetto Ace Home Center Takes Control of Inventory and Reduces Inventory Carrying Costs

 

Company Facts

  • Location: Pawleys Island, South Carolina
  • Industry: HWHC
  • Number of Stores: 1

"I feel like I have a much better handle on our inventory. I have already recommended this product to two or three retailers. I'm sold on it!"

Chris Biddix, Owner Palmetto Ace Home Center

 

Pawleys Island, South Carolina is one of the oldest coastal communities on the East Coast. In 2005, Palmetto Ace Home Center opened its doors to Pawleys Island's residents and visitors. Since then, Palmetto has provided a variety of items from hardware to gifts to outdoor furniture to both full-time residents and secondhome- owners who fix up their houses for the summer rental season. The company depends on its Epicor® Eagle® system to run their operations smarter and faster.

In the past, Palmetto Ace's owner Charles Biddix struggled to control inventory and make the ordering process more effective. "We are an 18,000 square foot store with a lot of inventory," explains Charles. "We didn't have an adequate way to manage our inventory the way we needed. The suggested order points required a lot of manual adjustment. We had a lot of empty pegs, and we weren't confident about our inventory numbers."

With the assistance of Epicor® Inventory Planner and its 18 pre-configured forecasting models, Charles is reigning in his inventory costs, better anticipating future sales, and using more precise order points to build accurate orders. "We now analyze what our customers are buying and more easily track what is on the pegs," says Charles.

Buying Smarter Reduces Inventory Costs

Charles, an admitted technology neophyte, worked with an Epicor trainer to master Inventory Planner. "Our trainer helped us set up the best practice forecasting model for Ace, which has provided much better control of Ace order costs," continues Charles. "Prior to Inventory Planner, an Ace shipment cost about $20,000 and now it is approximately $12,500. We're buying smarter, and we still have everything our customers need."

Reducing Slow-Moving- and X-Items

Charles and his employees now focus more closely on reducing unprofitable inventory by using item-level detail available in the new solution. "We have identified and are aggressively reducing the number of dead items and slow-moving, low-margin items in the store," notes Charles. "We anticipate that it will further reduce our inventory carrying costs."

Spending Less Time on Inventory Tasks

Previously, Charles felt that he was spending too much time adjusting the restocking orders, but now he devotes much less time to inventory tasks. "I now create more accurate orders in a lot less time. Before, I would make a lot of manual adjustments to the system's suggested orders. These days, we let 80-85% of the RSOs remain as they are," adds Charles. "Orders are now very accurate and easy to manage. The system is ordering smarter than we used to, and I can run the store instead of working at the computer."

Fine-Tuned Control is the New Norm

With Inventory Planner, Charles is controlling inventory and ordering more accurately. "Setting up the forecasting models and inventory plans allows us to better manage inventory. That control gives me peace of mind. I have already recommended this product to two or three retailers. I'm sold on it!"

About Epicor

Epicor Software Corporation is a global leader delivering business software solutions to the manufacturing, distribution, retail, and service industries. With more than 40 years of experience, Epicor has more than 20,000 customers in over 150 countries. Epicor solutions enable companies to drive increased efficiency and improve profitability. With a history of innovation, industry expertise, and passion for excellence, Epicor inspires customers to build lasting competitive advantage. Epicor provides the single point of accountability that local, regional, and global businesses demand. For more information, visit www.epicor.com .



Success Highlights:

Challenges

  • Reducing inventory costs without incurring stock outs
  • Identifying and reducing unprofitable inventory

Solution

  • Epicor® Inventory Planner

  • Reduced inventory costs, but has the products customers need - cut Ace orders by nearly half
  • Improved suggested order accuracy-80%-85% of RSOs are not manually adjusted

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