Given the changes in business practices post-pandemic and the evolving transformations at Aebi Schmidt, it became clear that adjustments were necessary to stay ahead. Aebi Schmidt Canada has dramatically improved its inventory processes and systems, which has yielded some exciting results for our company and our customers.
The Start of a New Chapter
Jocelyn Romain, CEO of Aebi Schmidt Canada, shares, “We faced a problem with storage and overhead, which led to unnecessary costs and risks when it came to meeting the needs of our customers. With increasing demand and increasing pressure on our staff, we hired Justin Labrosse as our first procurement manager and built a new procurement team. We were all very hopeful for positive changes — and we certainly got them.”
A graduate of the Université de Sherbrooke, Labrosse began his career at an agri-food company, where he spent five years as a buyer and store manager. Procurement was a big part of his role, and managing inventory was a delicate balancing act, especially with the added tests of food expiration. As he said with a chuckle, “I knew that streamlining an inventory transition and updating a system would be complex, but my experience with the pressures of keeping fresh produce up to date was a tough teacher.”
A Fresh Idea is Delivered for Customers
The procurement team decided on a new Fixed Delivery System. Under the original process, for example, if 100 of a particular part were expected to be needed throughout the year, 100 of those items were ordered at the beginning of each year. The problem was that this inventory had to be stored onsite and managed very carefully, which was both time-consuming and inefficient.
With the implementation of the Fixed Deliver System, parts are ordered monthly on an “as needed” basis. Justin explains, “Ordering only the parts we need each month keeps costs down, reduces overhead, and makes inventory management easier in terms of physical storage, counting, and invoicing. We’ve also been able to offer customers shorter delivery times — about 2-3 days. Before this process was in place, some products could be backordered for weeks or even months.”
Taking Stock of New System
“We have a number of new ideas in the works, and they’re all going to make a real positive difference,” said Alain Gagne, Director of Operations at Aebi Schmidt Canada. “Because many common parts move through our department in high volume, it has always been necessary to keep a large surplus on hand. Now, we’re working differently with our vendors to streamline our system and make inventory easier to manage. This also allows us to offer more options and keep costs down for our customers.”
Labrosse reflected on the experience, “It seems funny, but it turns out that keeping customers happy boils down to space. The less room taken up by parts sitting idle, the more easily we can manage our inventory and invoicing. By coordinating with suppliers and avoiding duplication in our storage efforts, prices will be easier to manage, products will be more readily available, and we’ll have fewer backorders. It’s really paying off for our clients.”
Jocelyn says, “Justin joined our company at a time when we really needed to address our inventory levels. We knew it wouldn’t be an easy task, and it could take several weeks, if not months, to fully address. However, in less than a month, we could already see Justin gaining control and making positive headway.”
Now, customers can take advantage of exclusive monthly parts promotions! Stay updated on the latest offers from Aebi Schmidt Canada. For more details, reach out to Aebi Schmidt Canada.