How Low Carb Canada avoids out-of-stocks and overstocks
Located in Toronto, Low Carb Canada is a health food retailer and distributor with the goal of helping their customers live happier, healthier lives. With the help of distributors and other specialty stores, they sell low-carb, gluten-free, and weight loss products through both retail and wholesale channels.
With over 2,000 SKUs, two Shopify sites, and two brick-and-mortar stores, Andrew Singh, VP of Purchasing at Low Carb Canada, was spending at least 15-20 hours per week managing inventory. He was manually creating and updating purchase orders, some with as many as 400 different SKUs, and was saving time by ballparking order estimates. While ballparking was necessary due to running a lean team and having many other tasks and challenges at hand, it created a situation where stockouts were more pervasive than Andrew would have liked. He knew there had to be a better way to forecast demand based on historic data and strategically order from suppliers.
Low Carb Canada chose Stitch for its integration with Shopify and the unparalleled customer service Andrew received while on an initial trial. Aside from time saved due to Stitch automatically updating inventory across all Low Carb Canada’s channels, Andrew is now able to make more intelligent purchasing decisions based on real-time data and reporting.
“With real, live, aggregate data, we’ve found the information to be staggering. There’s no way we would stay in stock with what we’ve been buying.” Data accuracy becomes even more vital as businesses scale and purchase orders’ subtotals increase by orders of magnitude—stockouts cost even more at that level.
Andrew and the Low Carb Canada team use Stitch’s sales velocity report to avoid costly stockouts or overstocking. Andrew explains, “Using forecasting with Stitch allows our warehouse to run out of products at the same time. I’m buying intelligently and saving money by consolidating our shipments.” Low Carb Canada also has a custom report that provides detailed insight into sales trends by channel, allowing for more precision.
Stitch Features Low Carb Canada Uses Most
- Sales velocity, stockout, and forecast reports
- Custom reports showing aggregate sales data by channel
- Sorting stock by ‘available’ in the variant table
- Smart replenishment
With sales velocity and smart replenishment they can trust, for the first time in two years, Low Carb Canada has yet to have their high income products hit zero stock. “We’re projecting based on real data,” Andrew says, “I need to be able to justify my purchases and I can do that with Stitch.”
In addition to saving money with smart replenishment, Andrew estimates that Stitch does the job of 2-3 people. With the ability to record lead time and shipping costs within Stitch, Andrew can trust the software to help him make smarter purchasing decisions. With a robust system and Stitch support that the whole team can trust, Low Carb Canada can worry less about inventory and more about making customers happy.
“A stockout is a potential for loss. We’ve managed to keep everything in stock while our next shipment was on the way. I attribute that to Stitch. I can say without a doubt, whatever Stitch guides me to buy, I’ll buy.”
Andrew Singh, VP of Purchasing | Low Carb Canada