PR-Logisticar's logistics management system – Logisticar – is based on a refinement of ABC logic, which has been applied to analysing sales, purchases, company management, inventory management, production management, personnel time management, and customer inventories.
Logistics – covering information, material, and monetary flows from primary suppliers to end-customers – is a key issue in terms of business success today. Optimally managed logistics provides an essential competitive edge. Not least because logistics, particularly in the areas of purchasing and inventory processes, involves such large amounts of money. Finnish industry alone spends some €50 billion on purchasing goods, and monetary flows are ever greater in importing and retailing. Inventories tie up capital valued at some €20 billion. By managing material flows, production control, and purchasing more effectively, industry can make significant savings.
The key to more effective logistics is a steering system that is capable of measuring and managing the entire supply chain. Based on ABC logic and Pareto's 80/20 Rule, and the realization that a small component of a larger group can have a disproportionately larger impact, the Logisticar system is designed to do just that. ABC logic has been further refined in the Logisticar system, and applied to analysing sales, purchases, company management, inventory management, production management, personnel time management, and customer inventories.
Clearly defined targets and key figures
The Logisticar system comprises data warehousing, real-time analysis, simulation tools, and efficient reporting. The Logisticar data warehouse collects all the strategic data on inventories, purchases, customers, sales, and production required to calculate reports to support efficient steering.
The deployment of a Logisticar system always starts with an analysis of a company's current status, which is then discussed with the customer. The outcome of this analysis and discussion serves as the basis for defining a customer's logistics strategy and purchasing policy, and establishing targets and key figures.
Specific goals are set with the customer for IT inventory turnover, availability of stock, service levels, routines for purchasing and sales, increases in sales and profit margins, as well as customer satisfaction and return on intellectual capital.
Based on results
The Logisticar concept comprises two integral parts: software and extensive training. Step-by-step training starts with a group session, and advances to personal and practical software tutoring. The role of training in reaching set targets is essential, as no software, however powerful, can change a company's key figures or improve its profit margin on its own – only users can do that. User training is supported by Logisticar courses in purchasing, consultative sales, inventory control, and company management.
Logisticar's philosophy is that its software must yield a tangible financial benefit for the customer. This is reflected in Logisticar's commitment: customers can acquire the Logisticar system by paying a fixed fee or for free, if set targets are not met 100%, or a combination of the two. This type of commitment, with the vendor making a 100% guarantee of this nature, is unique in Finland, and in Europe.
A number of major companies, in areas such as retailing, importing, and manufacturing, are already benefiting from the Logisticar system. In Finland, these include Ensto, iittala, Kalmar Industries, the K-rauta retail hardware chain, Rautakesko, Onninen, Outokumpu Stainless, Porkka, and Finland Post. Outside Finland, system users can be found in Sweden, Estonia, Russia, Latvia, Poland, Austria, and France.