Overseas Trading Limited (OTL), a fast growing distributor of value-line products, has improved cash flow and cut its inventory levels by one third using a finance system implemented by m-hance.
OTL has experienced rapid and impressive growth during the last decade. Today it has a turnover in excess of £14 million and its customers are global, situated across the UK, mainland Europe and also in Australia. To support this growth, OTL recognised that it needed a financial management system to manage its stock relating to over 600 value-line products that the company provides in as diverse categories as DIY, household, confectionary and snacks, audio, pet accessories and stationery.
Phil Jennings, financial director at Overseas Trading Limited, explains, “As the worldwide economic downturn began to bite, we found that our previous Sage Line 50 system wasn’t geared up to respond as accurately or as quickly as we required. It took too long to extract information and couldn’t provide the type of management information that we needed which began to impact our efficiency levels.”
After reviewing the market OTL selected a financial management system from m-hance with advanced project management, inventory, sales order processing, purchasing and retail management functionality. The system’s business intelligence analytics and intuitive reporting also supports the smooth running of OTL’s business and assists with improving vital decision-making.
Through the advanced inventory management feature in m-hance’s finance system OTL has significantly streamlined its operations, gaining greater control over inventory and order fulfilment to provide its customers with more accurate information relating to current stock levels and anticipated lead times. Furthermore, the advanced inventory management functionality also enables OTL to access accurate, real-time data on product or sales trends that helps to support more effective decision-making based on historical data.
Jennings comments, “In 2008 our stock levels were in excess of £3.7 million. Now through better inventory control and the ability to understand where changes can be made our stock levels are down to £2.3 million, a reduction by over one-third. By transforming our productivity using m-hance’s system, we now have more control over working capital and can employ it more effectively.”
Jennings adds, “If we’d carried on with Sage it would have been difficult to return to the same or improved levels of growth we’d previously seen. m-hance’s system has enabled us to manage through the recession and we’ve come out of it in a much stronger position.”