Cin7 > Case Studies > Heritage Building's Transformation: From Second-Hand Goods to Thriving Multichannel Business with Cin7

Heritage Building's Transformation: From Second-Hand Goods to Thriving Multichannel Business with Cin7

Technology Category

Functional Applications - Inventory Management Systems
Functional Applications - Warehouse Management Systems (WMS)

Applicable Industries

Buildings
Cement

Applicable Functions

Logistics & Transportation
Warehouse & Inventory Management

Use Cases

Building Automation & Control
Inventory Management

Services

Training

About The Customer

Heritage Building is a company with a long history, initially operating as a supplier of recycled timber. Under the leadership of Bill Rendell, the company expanded its product range to include other building materials such as doors, windows, light fittings, and bathroomware. This expansion led to complex inventory requirements, particularly as the company dealt with second-hand goods where each item was unique. As the second-hand market became less viable, Heritage Building sought to grow in new directions, eventually transforming into a modern, just-in-time purchasing model that didn’t require carrying a lot of stock.

The Challenge

Heritage Building, initially a supplier of recycled timber, expanded its business to include other building materials like doors, windows, light fittings, and bathroomware. This expansion led to complex inventory requirements, especially as the business dealt with second-hand goods where each item was unique. Initially, the company used MYOB and spreadsheets to manage its inventory, but this system proved inadequate. After struggling with MYOB for almost nine years, Heritage Building sought the help of SMB Consultants, a new business in the cloud software implementation and coaching industry. SMB Consultants set up Heritage Building with Lightspeed, a best-of-breed inventory management solution at the time. However, as the second-hand market became less viable and the world of online business rapidly evolved, Lightspeed failed to keep up, leading to growth stagnation due to manual tasks and error fixing.

The Solution

SMB Consultants, understanding the evolving needs of Heritage Building, suggested a new software solution that could help the company exit the second-hand goods market while growing in new directions. They used Cin7 to create a working proof-of-concept, introducing Heritage Building to new workflows and opportunities offered by the software. After finalizing the proof-of-concept, SMB Consultants worked with Heritage Building to implement the full project. Cin7 enabled Heritage Building to transform from a business that physically stored and moved a lot of second-hand goods to a modern, just-in-time purchasing model that didn’t require carrying a lot of stock. The software's ability to support a dropshipping model allowed Heritage Building to reduce its total stock holding by a factor of more than four, significantly reducing administration requirements while improving shipping times.

Operational Impact

The implementation of Cin7 has revolutionized Heritage Building's operations. The company has successfully transitioned from a second-hand goods business to a thriving multichannel business selling new materials. The software's support for a dropshipping model has significantly reduced the need for physical storage and movement of goods. This shift has not only reduced administrative requirements but also improved shipping times, enhancing customer satisfaction. Furthermore, Cin7 has enabled Heritage Building to diversify its product range, with the company now selling fireplaces as a new sideline. The partnership with SMB Consultants has also been beneficial, providing ongoing support and assistance whenever needed.

Quantitative Benefit

Reduced total stock holding by a factor of more than four, leading to significant cost savings.
Improved shipping times, with goods reaching customers in less than a week compared to the previous 2-3 weeks.
Unlocked growth after 17 years in business.