The application provides a powerful forecast engine and replenishment system to Thrive’s clients, giving them the ability to precisely align their inventory supply with their demand for each SKU at each stock location, so that they can buy optimally from their vendors. The first thing Thrive’s consultants do with a new client is to understand the client’s goals and business model so the system’s inventory policies can be set to achieve their goals. By taking inputs from their clients, Thrive Technologies can then analyze their requirements and preferences. Based on these findings, Thrive creates a model in the software and shows the inventory forecasting results to its clients so that the clients can understand the impact on inventory of their policies.
“Most distributors use their ERP systems to predict their upcoming demand and they are not aware of their forecast accuracy. When we measured the forecast accuracy of ERP systems, we found them to run around 35 percent. To address this, we have developed a patent pending forecast engine which can deliver 90 percent accuracy and provides increased profitability and ROI,” remarks Morris. One of the master distributor clients of Thrive Technologies, Matco-Norca in New York, had problems using their ERP system to optimally manage their inventory due to their long lead times, seasonal demand and multiple warehouses.
Wholesalers and master distributors are not taking advantage of the latest inventory science, and are losing sales and profits unnecessarily
They were constantly running into issues of availability or excess stock, depending on the seasons. The client’s ERP system lagged in reacting to their demand. Using Thrive’s system, Matco-Norca was able to reduce their inventory by 30 percent and increase their fill rate by eight percent.
By leveraging the cloud and the latest innovative inventory forecasting science, the company believes it can increase profitability for every distribution company. To keep its clients updated with the inventory science and methodologies, Thrive invests over 25 percent of annual revenues into research and development. I t releases a large upgrade once a quarter which it rolls out to all customers so they can be confident they will never be left behind again in terms of new functionality or inventory science. To ensure their clients are able to get the most from the software, Thrive employs former buyers and supply chain consultants to support its clients.
Over the next few years, Thrive will continue to expand globally, as its system is localized, and it can be used for different languages. Thrive is well equipped to help companies overseas get their inventories under control and achieve better fill rates, thereby increasing their profitability. With regards to innovations, “we are partnering with the leading business intelligence systems in our markets as well as building our own analytics in our system to help our clients monitor and see their own improvement as they use our system,” concludes Morris.