Lincona increases revenues by 25% thanks to Telema VMI

News

Sven Ersling, board member of Lincona, one of Estonia’s largest flooring suppliers, talks about how the use of Telema’s services has increased their sales revenue. 

Lincona was founded in 1992 and they’ve become the largest flooring sellers and distributors in Estonia. Lincona has experienced growth year after year and their product selection includes almost all types of flooring. The largest product assortment and sales volume in the market means that the company needs even more accuracy across all of its processes, which is why they turned to Telema’s services seven years ago.

Why did Lincona decide to use Telema’s services?

Today, Lincona is actively using three of Telema’s services: Telema EDI Supplier, Telema MMT, and Telema VMI. These services help to make the company’s supply chain processes more streamlined, accurate, and transparent. The human intervention in data entry can lead to errors and can be ineffective. Telema’s services have improved Lincona’s processes through minimising data errors, which in turn has automatically decreased the need for corrections. „Our analysis with Bauhof showed that through the use of Telema VMI (Vendor Managed Inventory) we managed to increase our sales revenue by 25%“, says Ersling. „We now receive daily sales and stock level data via EDI and this, combined with more frequent deliveries, ensures better product availability. The results were evident within the first 4 months!“

Who should use Telema services?

Ersling is convinced that Telema is suitable for any trade company either selling or buying products. „In a market situation, where there’s more work than workers, a company shouldn’t waste time on processes that can be automated, particularly in a country that takes pride in being the best in digital life.” Lincona’s employees gave positive feedback to Telema services and added that no Telema products have encountered insurmountable problems with its root services. Telema has definitely helped Lincona to improve their business processes. This is the reason why Ersling is ready to recommend: „Do not hesitate for too long!“

Telema VMI 

Vendor Managed Inventory (VMI) is the inventory replenishment strategy where instead of sending orders, buyers share daily sales information (POS data) electronically with their suppliers. Based on this data suppliers make decisions to replenish the goods at the shop, and are able to react to unexpected demand. VMI helps increase product availability, decrease inventory levels and costs, and increase revenue and efficiency of supply chain.
Telema VMI enables transferring the data from buyer to supplier and provides simple tools to analyse the data so that the supplier may quickly and conveniently make replenishment decisions.