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“Finally, we got our supplies and procurement under control.” – Agrozet


Agrozet is the largest distributor of agricultural, municipal and forestry equipment in the Czech Republic. A substantial part of its revenue is generated also by selling spare parts and a subsequent service. If you have not heard of Agrozet, you’ve surely heard about the brands it markets, such as John Deer, Zetor, Dieci, Pottinger and Tecnoma. With a yearly increasing revenue over 1.3 billion CZK, 50 years of tradition, 13 operations in the Czech Republic and 220 employees, Agrozet is precisely the kind of customer that profits from our solutions in the field of supply chain management.

“... information flows precede material flows.“

The particular decision about buying Planning Wizard was preceded by an implementation of a new information system. The aim of the first project was a transfer of large amounts of data directly into the central information system. This way of working with information fulfills one of the substantial conditions of an efficient supply chain – information flows precede material flows.

The main aims of centralization were:

  • Having supplies under control
  • Changing the processes in procurement
  • Achieving saving on expenses

The old information system did not manage to fulfill these goals and it did not correspond to the requirements of Agrozet’s management. In the system, advanced analyses were missing that would enable them to address simple questions, such as why they order the products they order, or how an appropriate structure of the supplies looks like, which items are unnecessary and which are, contrarily, available in too low numbers, causing frequent stock-outs.

The change of procurement processes was inevitable. The management wanted to change the procurement from an inefficient identification of understocked items and subsequent ordering, into a really beneficial process in which the procurement plays an active role in the inventory management system. The procurement should be actively negotiating with the supplier, looking for new possibilities for extending the product portfolio, controlling the status of individual orders, looking for alternatives, etc. Planning Wizard automates many of the core processes and thus leaves more time for business operations.

„At our branches, the unwanted items are often overstocked.“

The next reason to switch to a new system was a required higher centralization. Agrozet was in a situation where its branches were overstocked, which is relatively common in the market. Agrozet had high stock levels of unwanted items. As a consequence, the storing capacities were occupied by items with low saleability. For this reason, Agrozet wanted to implement higher centralization, efficient material redistribution between the branches and strengthen the position of the central warehouse.

Planning Wizard is the most important tool for realization of this strategy.

Used solutions and services

Agrozet

BENEFITS

  • Time savings – purchasers and branch managers do not have to prepare individual orders in a time – and energy – consuming manner. Everything is prepared every day in an optimal way.
  • Saving on locked-up capital, especially at overstocked branches.
  • Planning Wizard became the main marketing tool and it helps to define realistic future plans.

USED SOLUTIONS AND SERVICES

CASE STUDIES