A case study on JIT inventory…

Problem:  A large national casual dining brand was struggling with maintaining proper gift card inventory – especially during the high selling months of November and December.  At times, they found themselves out of stock, resulting in lost sales and high costs to expedite replenishments.  There was no system in place to manage and order new gift card inventory, nor were they interested in adding another system and process to store management’s plate.  Optimum Card Solutions met with brand representatives to discuss their objectives:

• Eliminate out-of-stock situations
• Eliminate expedited shipping costs
• No added systems or processes for ordering
• A cost-effective solution that is ROI positive within a year

Solution:  Optimum Card Solutions proposed and launched a completely customized Just-in-Time fulfillment solution.  The solution integrated with inventory levels and real-time sales data provided by the brand’s stored value provider.  Minimum stock values were assigned, based upon each store’s sales history, and when those stock levels were reached, the system automatically generated a replenishment order, ensuring arrival in advance of card inventory depletion.  Additionally, there is a secure online reporting module that is user-friendly and provides reports on shipments, tracking numbers, serial number data, shipment dates, inventory adjustment capability and more.

Results:  Since adopting this solution in 2013, it has met and exceeded all key objectives defined by the brand.  In addition, it significantly reduced overall shipping costs, saved a substantial amount on card production costs due to the tighter inventory controls, and eliminated customer service calls about inventory and shipments as a result of the online portal.