Optimizing Inventory Across a Franchise Network: Pirtek Case Study

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Optimizing Inventory Across a Franchise Network: Pirtek Case Study

Case study showing how Pirtek Australia used Demand Solutions Service Level Optimizer to automate replenishment across 84 franchise locations with 12-18 week lead times.

Published

June 4, 2026

Read time

3 min read

Source

Pirtek Australia distributes hydraulic and industrial hoses from a central DC in Sydney to 84 franchises and 320 mobile vans. Before implementation, franchisees manually managed replenishment, leading to poor inventory mix, higher transport costs, and inconsistent service levels. The Service Level Optimizer automated monthly stock calculations using ABC analysis and defined service targets (A=98%, B=95%, C=90%). The system restructured data to Item/Franchise level, improved focus on A and B items, and delivered inventory visibility across all locations.

Key takeaways

Automated replenishment replaced manual franchise ordering for 3,500 line items

ABC analysis and service-level targets (98/95/90) set safety stock by location

51 of 84 franchises adopted automated replenishment within rollout period

Central office extended the model to South Africa and New Zealand operations

Daily refreshed, fully automated calculations reduced reliance on franchisee forecasting skills

Market overview

SCR methodology note

Vendor landscape

Leaders

Implementation considerations

Important consideration

Original Source

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