Nordic Knots - weaving success through data-driven inventory planning

Scandinavian interior design brand Nordic Knots has made waves in the industry with its rapid growth. With a focus on high-quality home textiles and a commitment to timeless design, the company has successfully navigated the competitive landscape.

In this article, we delve into Nordic Knots' remarkable journey, shedding light on the challenges they've overcome and their strategic partnership with Madden Analytics to optimize inventory. Stina Göransson, COO at Nordic Knots shares valuable perspectives on their achievements.‍

Managing capital with ambitious growth

Nordic Knots is a brand on a stable rise. Founded in New York in 2016, it quickly gained recognition for its dedication to Scandinavian craftsmanship and timeless design. The goal is to expand further. With Stockholm serving as the headquarters and the US as the largest market, they continue to grow their presence in Europe.

Rapid growth comes with challenges, particularly in managing capital effectively. Stina explains, "Growing rapidly while remaining bootstrapped means we have to be vigilant about cash management. It is one of the most critical factors in a company's success - finding the right balance between building enough inventory to fuel growth and securing liquidity. Especially for brands like us, as we aim to sell our products at full price."

Streamlining purchasing with Madden Analytics

Seeking a solution to simplify and futureproof their inventory planning, Nordic Knots turned to Madden Analytics. Stina elaborates on their decision: "Our needs were specific. We don't make seasonal purchases in large volumes; instead, we source smaller quantities every month. This complexity is further compounded by the differences in the EU market compared to US. The different size metrics, for one, doubles the number of SKUs per product."

The partnership with Madden Analytics has proven instrumental in addressing these challenges. "Madden Analytics has improved our forecasting accuracy significantly. Our KPIs are substantially better. We're undoubtedly making smarter purchasing decisions, and it has saved us time and reduced our internal workload," Stina notes.

Leveraging data for informed decisions

Data is at the heart of Nordic Knots' decision-making process. Stina elaborates, "We use Madden’s analysis modules to gain a comprehensive overview of our sales and inventory. We have one person dedicated to forecasting, inventory planning, and procurement but our entire team uses the analysis module to analyze valuable data.“

With the help of Madden Analytics, Nordic Knots has not only streamlined their purchasing processes but also gained better visibility into their planning. "We have a much clearer overview now. There's less risk of overlooking something important. We can assess each style separately and then add up the total. Madden's visualization makes it easier to see where we invest and question existing plans," Stina says.

In the fast-paced world of interior design, the ability to adapt quickly is crucial. Stina highlights another benefit of Madden Analytics: "Madden's forecasting can look far into the future. This is vital for us as we have ambitious long-term plans. It allows us to assess ahead of time if we're on track or if we can push even further. We continuously align our budget planning with sales trends and potential."

Effective inventory planning and sustainability

An essential aspect of Nordic Knots' success story is its commitment to sustainability. Stina highlights, "Reducing overstock aligns perfectly with our sustainability practices. We appreciated Madden Analytics' philosophy of minimizing excess inventory rather than resorting to large-scale clearances."

This approach sets the stage for effective inventory optimization. Stina notes, "Our inventory turnover rates have increased significantly. We now maintain better inventory levels relative to our sales, which further enhances our financial flexibility."

A strong partnership and streamlined processes

One standout feature of the partnership has been the seamless integration of Madden Analytics and Microsoft Business Central. Stina explains the significance, saying, "The integration has significantly reduced time spent on administration for us. We can now place orders seamlessly, eliminating unnecessary steps and reducing the margin for error."

Behind every successful partnership is great collaboration. Stina emphasizes their positive relationship with Madden Analytics, saying, "Madden Analytics has gone the extra mile for us. We've had direct access to their team, and they've provided incredible service. It's not just about technology; they've been a sounding board in how to strategize and set up our inventory processes."

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Nordic Knots' continued growth and enduring success are a testament to their unwavering commitment to quality and sustainability. We are excited to continue our partnership as they continue to advance in the industry.

Interested in streamlining your procurement processes and enhancing your inventory planning? Learn more about our solutions or book a free demo below to assess your needs!