Success Stories
McNaughton-McKay Success with GAINS
GAINS Increases McNaughton-McKay’s Turns, Fill Rates, and Profits by Optimizing Inventory
30% increase in inventory turns
7% increase in revenue
Receiving activity dramatically reduced
Moved from the 16th largest electrical distributor in the U.S. in 2011 to the 8th largest by 2019
The Electrical Equipment Distribution market is highly competitive and very dynamic. Not only do customers change orders and items on a frequent, often random basis, but the market itself is subject to violent gyrations due to weather, interest rates, and other macro-economic factors.
“To deal with such an environment, McNaughton-McKay had long sought the ability to accurately forecast, then dynamically monitor and adjust forecasts, in real time, so that they could ensure targeted customer service levels match the ever changing demand signals of our customers,” states Bob Kuntzman, Corporate Inventory Manager. “Implementing GAINS has given us that ability,”
McNaughton-McKay operates in 45 locations throughout the United States. They service over 6,500 customers and carry over 75,000 products which are supplied by over 500 vendors. McNaughton-McKay is listed as the 8th Largest in Electrical Equipment Distribution in the U.S.
“We first became familiar with GAINS because several other large electrical equipment distribution vendors already had great success using GAINS to optimize their inventories for improved profit and service level achievement,” states Kuntzman. “Because of this, we decided to commence a GAINSystems’ IIPSE to assess our operational opportunity.”
“The financial results of the IIPSE were so compelling,” states Kuntzman, “that after careful validation of the IIPSE results, we decided to immediately install an enterprise license.”
Given the highly competitive nature of the Electrical Distribution business, McNaughton-McKay made the strategic decision, to target GAINS’ primary goal as one of optimizing their business around increasing complete order fill rate and reducing inventory investment as their secondary goal.
“Because of GAINS’ ability to dynamically identify and manage total error, in real time, and then adjust policies and plans to meet targeted customer service levels accordingly, we have seen our inventory investment stay constant even as our Fill Rates and Sales increase – GAINS has definitely helped us reduce our inventory and safety stock!”
– Scott Sellers, VP Operations
