Connolly Music Co. Realizes Immediate ROI with PlanningEdge
Connolly Music Co. implemented PlanningEdge’s solution to meet the increasing challenge of business growth, long order lead times and annual peaks in product demand. With this solution, Connolly Music Co. has been able to save millions of dollars in inventory on hand and is ready to meet the needs of their customers.
Connolly Music Co. partners with several manufacturers of high quality string instruments. They have a long-standing relationship with Thomastik-Infeld, based in Vienna, Austria, and in recent years, brought on additional manufacturers as well. As a result, they began to enjoy a steady growth in the business and realized that Connolly Music Co. would need a new way to plan inventory to accommodate that growth. Their previous methods of inventory planning included very time consuming tasks and they felt that forecasting was not as accurate as it could be. One of their most difficult challenges is that Thomastik-Infeld requires a six-month lead time on orders. Using their previous inventory planning system, it was difficult to predict and understand patterns in product needs over time to determine the appropriate number of instruments to order. Other manufacturers also have long lead times on orders and when combined with the very high demand at the beginning of each school year, ordering too little of a particular product could be disastrous. The months it would take to get another order could mean significant revenue losses. As a result, they often ordered more than they thought they would need.
“They saw the need. They saw the value. They determined the savings. It turned out to be a win-win situation for both of us. Yet for me, their willingness to move quickly and jump on this project with a strict attention to our needs was very impressive. I expect this story to just get better and better.
– Jack Connolly, CEO, Connolly Music Co.
PlanningEdge’s solution was robust enough to resolve all of the problems. Today, they are able to manage over 6000 SKU’s with ease and forecast product needs far more accurately. Connolly Music Co. was careful to consider several solutions and evaluate the costs as well as the benefits and capabilities.That analysis illustrated PlanningEdge as far ahead of the competitors. During initial consultations to determine how they could help Connolly Music Co., PlanningEdge’s analysis revealed that there were several pending orders that, according to their forecasting, Connolly did not need to place. Canceling these orders resulted in an immediate Return on Investment (ROI) of approximately 300% as well as confirming that their solution would give Connolly Music Co. the capabilities they were looking for. The ability to plan more accurately resulted in a savings of about $1.5 million that first year, and Connolly Music Co. savings are now tracking at a rate of $1 million per year.
“Top to bottom, I can’t think of one weak link in the chain at PlanningEdge.The capabilities of their Inventory Management solution and the experience of their staff far exceeded my expectations, and make my job much easier.”
– George Haddow, Operations Manager, Connolly Music Co.
George Haddow, Operations Manager, is responsible for managing inventory at Connolly Music Co. He is pleased with the time he and his staff have saved since they began using PlanningEdge’s solution. “What used to take me days to complete, now takes only minutes. PlanningEdge’s Demand Planning Module does all the work and accurately provides me with the appropriate number of products to order,” says Mr. Haddow. There are multiple features that make Mr. Haddow’s job easier, such as providing alerts when a potential problem exists, custom reports and capabilities, and a support staff that is skilled and knowledgeable in PlanningEdge’s functionality and inventory management as a whole.
About Connolly Music Co.
Connolly & Co. has been a leading U.S. distributor of fine musical merchandise since 1970. As a partner with Thomastik-Infeld, Connolly & Co. exclusively imports and distributes their highly acclaimed line of strings and accessories for bowed and fretted instruments. In addition, Connolly & Co. also imports and distributes products for bowed instruments from various respected manufacturers around the world. For more information, visit https://www.connollymusic.com/.