Höganäs Gives Customers More

January 23, 2007

Höganäs, Sweden

More service. More savings. More value.

With a core competence in metal powder technology, Höganäs is the world’s largest producer of iron and metal products for the automotive industry. Headquartered in Sweden, they have 14 locations worldwide and annual revenue of 4.6 billion SEK. Höganäs AB has chosen Videlity’s Vendor Managed Inventory to improve the value proposition they offer their customers. By improving the information level in their supply chain they expect to increase customer service levels / delivery performance and lower their customers’ transaction costs while at the same time they optimize their planning processes and lower their inventory bindings.

A strategic decision

According to Per Lagerlöf, Vice President of Operations Europe & Global Supply: “We have found that the one of the keys to improving our value proposition lies in a transparent supply chain. By raising the information level of our supply chain it allows us to greatly increase supply security and save money for our customers, as well as for ourselves.”

Expect great things

Höganäs has been running their VMI solution for two months and the results have been overwhelmingly positive.

“Our first customer came on board in mid-November. By January 2nd they had already reduced inventory by 40%,” says Johan Walther, Höganäs Planning Manager.

“With VMI we see exactly what our customer needs, we produce it and we ship it out. Forecast data lets us plan much more precisely instead of having a high level of security stock for last minute fluctuations in demand,” concludes Richard Molin, Höganäs Logistics Manager.

Download the press release here.