Case Study: How Krachtshop Automated Replenishment and Improved Availability
Customer
Krachtshop, owned and operated by Patrick V., has been one of the first customers of Shelf Planner.
Robbie and Patrick first got in touch when we had just launched the very first prototype of the program in 2022.
Back then, Shelf Planner was still an ’embedded plugin’ within the WooCommerce environment and with over 300 SKU’s, performance was to say the least, a challenge.
But Patrick appreciated the power of automated replenishment from the start and luckily for us, had a lot of patience with us until we moved to our new platform…
Challenge
A fast growing online shop that is taking more and more time to run, taking away valuable time from the core business.
- 'The Excel file trap'
With a relatively large assortment with over 1500 SKU’s, understanding what to order and when was a full time job.
- Out of Stock & Lost Sales
The top-seller were always out of stock, a common problem for retailers.
Patrick, a Dutch physiotherapist and fitness coach, who started his WooCommerce store as a side business, contacted Shelf Planner to see if it was possible to automate the purchase process for his store. His primary business – coaching professional athletes – was suffering as he had to spend more and more time operating and running his store.
What initially started as a side hustle turned into a thriving business. The only question was, how could he continue doing what he loved and run his store at the same time, without working around the clock.
The Solution
Shelf Planner was engaged to connect the client’s data into the forecasting engine in the Shelf Planner AI platform, with the goal of forecasting sales up to 6 months in advance. Starting with a small sample of SKUs to prove the technology, the Shelf Planner team worked to include covariate data such as COVID-19 cases, mobility data, government actions such as shelter-in-place orders, and online traffic.
Solution
Shelf Planner’s Inventory Optmization and Purchase Order management for WooCommerce.
Once we became familiar with the Patrick’s product range, it became clear we needed to split products into 2 buckets: those with short lead times and those with longer lead times, as different forecasting approaches and data streams were relevant for each bucket.
Sales Forecasting is a particularly powerful tool for ecommerce businesses because the space allows for access to a plethora of data and data streams – fantastic for some of the data hungry algorithms in the Shelf Planner AI Forecasting Engine.
In the case of this store, a combination of quality data, powerful technology, and a strong project team produced the accuracy results that the client needed to succeed.
Scope
Generate Order Proposals and automate Purchase Order proposals for hundreds of products, every 2-3 months.
The Results
At the beginning of the project, we used one of the standardized Shelf Planner reports to understand the Sales to Stock Ratio.
Your stock to sales ratio can help you understand how much capital you have tied up in inventory on average over a specific period of time, and how that compares to your revenue from sales.
By tracking it consistently (ideally for 3 to 5 years), you gain new insights that you can use to optimise your stock levels, adjust your sales model, and subsequently maximise your bottom line.
Sales vs Intake (%) BPS Jan – Dec 2023
Selling faster than buying
Over-stocked
Ideal stock range
Sales vs Intake (%) BPS Jan – Dec 2024
Selling faster than buying
Over-stocked
Ideal stock range
For instance, if your stock to sales ratio is lower than you’d like, you can infer that you are stocking out and aren’t holding enough inventory to consistently meet customer demand. To increase it, you should buy more inventory (provided the company’s sales volumes don’t change), and improve demand forecasting in future seasons.
The graphs shown here portray the average sales to stock ratio during Jan – Dec in 2023 (left) and the ratio in 2024 (right). We managed to improve the Sales to Stock Ratio dramatically. Already after 8 weeks we started to see the difference.
The 2 green horizontal lines in these graphs show the Ideal Stock, based on Lead Times from suppliers, and the order frequency. For this store, we have used a quarterly order pattern, meaning the store owner wants to place purchase orders once every 12 weeks.
Customer feedback
“This level of automation has saved me countless hours of manual inventory tracking and has allowed me to focus more on growing my business. However, what truly sets this plugin apart is the dedicated and professional team behind it. The developers and support staff have been incredibly responsive and helpful throughout my journey with the plugin. Their expertise and commitment to continuously improving the plugin have been evident in the frequent updates and new features they roll out.”
– Patrick V, Owner krachtshop.nl
Why It Matters
Krachtshop’s success story highlights the importance of leveraging technology to overcome common retail challenges.
By adopting Shelf Planner, they’ve not only optimized their entire assortment, but also set the stage for sustainable growth for years to come.
Sustainability impact
- Significant reduction in dead stock and overstock situations (cutting the long tail), which will ultimately lead to clearances and excessive stock.
- Reduction of waste and clearances due to better stock management.
Systems replaced
Excel spreadsheets
Ready to Transform Your Purchasing?
If you’re ready to optimize your assortment and achieve results like Emiko Beauty, start your free trial with Shelf Planner today. Let us help you make smarter decisions and unlock your business’s full potential.
