Success Stories - RM Tools
Implementing Demand Driven MRP (DDMRP) to a leading tools distributor in the Baltics
About RM Tools, UAB
RM Tools, based in Lithuania, is a major supplier of construction tools, both mechanical and electrical, across the Baltic States (Lithuania, Latvia, and Estonia). Established in 2006, the company focuses on distributing high-quality tools from leading global manufacturers. It also developed its own "Specialist+" brand in 2013, which is known for its balance of quality and affordability. RM Tools serves retail outlets, construction companies, and individual craftsmen.
The company operates both wholesale and retail services, offering an extensive range of tools and accessories through specialized stores and an online B2B platform. RM Tools is known for fast delivery, excellent customer service, and providing product training to its clients.
ForgeFlow's journey with RM Tools
ForgeFlow started working with RM Tools in 2023 to implement Demand Driven MRP (DDMRP) with Odoo using the ForgeFlow Demand Driven software. In a first project stage ForgeFlow delivered the Demand Driven Planner Workshop to the supply chain team at RM Tools in order to provide the necessary education about the DDMRP methodology. The project then continued by preparing a pilot project that included small number of SKU's. The pilot project ran for 6 weeks. The objectives of the Pilot were:
- Consolidate the knowledge about the methodology
- Familiarize users with the new software
- Assess the results from a number of Key Performance Indicators.
The Pilot project resulted in a massive success, and the company decided to roll out the DDMRP implementation across all products. Currently RM Tools is managing more than 10.000 SKU's using Demand Driven MRP.
The importance of measuring through Key Performance Indicators
KPIs provide a clear metric to assess whether you're on track to achieve your goals. They help quantify progress, making it easier to determine whether adjustments or improvements are necessary.
RM Tools has established Key Performance Indicators (KPI's) across their organization, and tracks target KPI values against actuals using historical charts. Here are some of the key KPI's used in supply chain:
- Service Level. This KPI helps to make sure that your organization is aligned to deliver the service. Demand Driven MRP helps to improve this KPI providing clarity on potential disruptions in the flow right-sizing the inventory to align the inventory to actual demand.
- Supplier Performance. Suppliers have to be able to be responsive enough to help you maintain the integrity of your stock buffers.
Freight Optimization
Some providers imposed certain rules, like order minimums or in other cases there were specific transportation requirements such as minimum number of pallets to include in the transportation of products. ForgeFlow's freight optimization suggests the right mix of products and quantities to include in a purchase order to meet the supplier or transportation requirements and achieve the right size of the inventory to meet the customer demand.
Our Shared Story
Get to know more about RM Tools and how ForgeFlow has helped this company from the testimonial of Ramūnas Kembrė, Commercial Director and Vitalijus Paškevič, Logistics Manager.
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