Bivio Networks Realizes 20% Inventory Reduction with Right90
Bivio sought a way to control its inventory levels during a period of tremendous growth over the last few years—more than 170% CAGR from 2005 to 2008. Bivio VP and CFO Keith Glover sought a way to better manage the sales forecast than the spreadsheets that often held unpleasant surprises for management. As the company grew, Glover looked for a way to manage the sales forecast in a way that would fit with a scalable sales process. For Bivio, the biggest issue was maintaining an efficient inventory level. In addition, Bivio’s board members were constantly looking for an easier way to understand "what changed in the sales forecast?" It was those challenges that led Bivio to seek a better way of managing its sales forecast data.
Bivio implemented the Right90 sales forecasting software in August 2008 after realizing it had outgrown its spreadsheet-based method of tracking sales data. The focus was to address the sales forecast mix and the impact on inventory management.
"The Right90 solution enabled us to improve our sales forecast accuracy and visibility to changes," Glover said. "This has resulted in a 20% reduction of manufacturing inventory within six months after adopting the software." The key benefits to Bivio are:
- Easy forecast capture: Bivio’s sales force has a scalable data collection system that is more accurate and simpler to manage. By enabling its sales force to collect better and timelier data, Bivio is able to maintain more trusted sales forecasting.
- Managing existing channels: By integrating the Right90 Web application into its workflow, Bivio has the ability to enhance its existing workflow. With a sales forecasting solution in place, the Bivio sales staff is able to focus on addressing changes as they occur.
- Identifying change: Because everyone sees the data in the sales forecast, Bivio can identify changes when they occur and can then focus on analyzing the changes. The company has the ability to take a proactive approach to addressing forecast changes in a timely basis and better manage manufacturing inventory.
The Right90 roadmap rolled out features such as Right90 Change Analytics™ almost in parallel with when Bivio realized it needed them. These new features helped Bivio recognize its goals.
After implementing the Right90 solution, Bivio is now able to capture the collective knowledge of its sales force, and has significantly improved its overall sales forecasting process.
Better accuracy up front has led to a 20% reduction in manufacturing inventory, a number that the company hopes to double within 12-18 months. Right90 software is making it possible for Bivio to aim for a 40% reduction in inventory within a year.
"It’s great for the management team to get timely high-level information on a consistent basis," Glover said. "But I’m a big believer in getting useful tools to the people that will get the work done. What I get out of it is gravy."
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