CUSTOMER SUCCESS
Naghi Group – Arabian Trading Supplies
Embracing Supply Chain Volatility with GAINS
Naghi Group is renowned for its unwavering commitment to customer service, so GAINS focused on improving decisions that drive fill rates and overall customer satisfaction. By maintaining service levels between 92% and 97%, Naghi Group has not only upheld its customer promises but also unlocked new dimensions of operational efficiency.
The distributor has seen a dramatic reduction in inventory holdings by deploying GAINS supply chain planning solutions for inventory optimization. This strategic move culminated in an average inventory reduction of SAR 24 million ($6.4 million USD) and enhanced liquidity by freeing 30% of working capital compared to the previous year. Today, Naghi Group operates with 35% less inventory volume while improving service levels, a critical factor in thriving amidst challenging demand and supply conditions.
The outcomes of their successful journey with GAINS are a testament to the strategic partnership that has developed, driven by GAINS’ experts and unmatched understanding of Naghi’s business goals.
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- Leading distributor in the Saudi FMCG market
- Headquartered in Jeddah, Saudi Arabia
- Over 15,000 employees
- Revenue of more than $3.2 billion
- 100+ brands
$6.4m
annual savings due to inventory right-sizing
95%
average increased case-fill rate post-implementation
35%
reduction in waste
7%
reduction in operational storage and transportation
30%
working capital freed up due to inventory reduction compared to previous year
“GAINS’ inventory solutions have helped us meet the needs of our most demanding customers while saving us SAR 24 million. With their expertise, we built resilience into our supply chain and achieved success within our first year with GAINS.”
Supply Chain Director, Naghi Group
Company Overview
In the dynamic realm of Fast-Moving Consumer Goods (FMCG) distribution where disruption is the norm, Naghi Group – Arabian Trading Supplies, a stalwart in the Saudi FMCG sector, has improved its supply chain decisions with GAINS. From increased inventory optimization to operational efficiency and customer satisfaction, the distributor has achieved performance results while managing a complex supply chain and market prone to disruption.
Cost-Effective Supply Chain Operations
Naghi Group achieved a 7% overall reduction in supply chain costs in an era where every penny counts, primarily through innovative storage strategies and more efficient transportation within their internal network. This decrease was a direct result of GAINS’s adept stock allocation methodologies and its experts, who saw this opportunity for improvement.
Exceeding the Expectations of Discerning Customers
The collaboration with GAINS has enabled Naghi Group to meet the high shelf-life demands of their most exacting customers. The introduction of a “channel-wise replenishment” process, facilitated by GAINS technology and supply chain experts, has ensured a continuous supply of fresh stock, a feat previously deemed challenging.
Revolutionizing Inventory Sharing & Standardization
The implementation of Inventory Sharing automation has been a game-changer for this distributor. Naghi Group capitalized on synergies within their business by centralizing operations, enhancing truck fill rates, and diminishing transport costs. Furthermore, standardizing the replenishment process has streamlined workflows, reducing the burden on team members and bolstering resilience within the supply chain.
A Supply Chain Story of Success & Synergy
The GAINS and Naghi Group partnership has been one of triumph and strategic foresight. With GAINS, Naghi Group has optimized inventory and maximized product availability across an extensive distribution network while improving its most important success metric, customer service. This strategic alignment has averted potential stock-outs, safeguarding against lost sales and market share, ultimately translating into millions in savings and elevating their competitive edge.
The GAINS Advantage: A Beacon of Innovation
GAINS has emerged as a cornerstone of Naghi Group’s Supply Chain success, offering solutions in inventory optimization, inventory sharing, and shelf-life management. These tools have been instrumental in reshaping Naghi Group’s supply chain and ensuring they remain at the forefront of the FMCG sector in Saudi Arabia.
Conclusion: Moving Forward Faster
The partnership between Naghi Group and GAINS is a model of inventory excellence that embraces volatility. Today, Naghi can move forward faster with a supply chain that is responsive and efficient and a benchmark for the industry. Their journey is a beacon for others, illuminating the path toward a resilient, adaptable, and profitable future in the FMCG landscape.
