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Case Studies > STM Brands Increases Operating Margin by 20% with DemandCaster

STM Brands Increases Operating Margin by 20% with DemandCaster

Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Platform as a Service (PaaS) - Data Management Platforms
  • Analytics & Modeling - Predictive Analytics
Applicable Industries
  • Consumer Goods
  • Retail
Applicable Functions
  • Business Operation
  • Sales & Marketing
  • Warehouse & Inventory Management
Use Cases
  • Inventory Management
  • Predictive Replenishment
  • Demand Planning & Forecasting
  • Supply Chain Visibility
Services
  • System Integration
  • Cloud Planning, Design & Implementation Services
The Challenge
STM Brands faced significant challenges in managing inventory costs and movement due to heavy reliance on spreadsheets. This led to sub-optimal supply planning, resulting in expensive air freight to ensure timely delivery of goods, negatively impacting margins. The company also lacked insight into market shifts, leading to slow, reactive responses and outdated or excess inventory. Disconnected planning and decision-making further limited collaboration between sales, purchasing, and production teams.
About The Customer
STM Brands, founded in 1998, specializes in high-quality, award-winning accessories for tablets, laptops, and phones. With a global retail presence and offices in Sydney, San Diego, London, and Kuala Lumpur, the company aims to provide 'Stuff that Matters for the doers of the world.' The company has grown significantly over the years, but faced challenges in managing supply chain costs and inventory effectively, prompting a need for better planning solutions.
The Solution
STM Brands transitioned from spreadsheet-based planning to a cloud-based solution using DemandCaster, integrated with their existing NetSuite ERP system. This move provided a more accurate picture of demand volatility and improved cross-functional collaboration. DemandCaster's visual representation of sales data by product and location, along with its forecasting algorithms, allowed STM Brands to make data-driven inventory decisions. The software enabled the company to identify potential excess stock and optimize inventory proactively, rather than reactively. Additionally, the integration with NetSuite facilitated seamless data transfer and real-time access to information, enhancing overall efficiency.
Operational Impact
  • Improved collaboration across sales, procurement, and production teams, leading to more informed decision-making.
  • Reduced reliance on costly air freight by 50%, significantly lowering logistics costs.
  • Decreased overall freight-to-sales ratio by 25% year-over-year, enhancing cost efficiency.
Quantitative Benefit
  • Increased gross profit margin by 5%.
  • Increased operating margin by 20%.
  • 50% reduction in the use of costly air freight.

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