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How R&E Supply carries less inventory and sells more with Lantern

How R&E Supply, a family owned HVACR distributor, carries 18% less inventory with 29% higher turns while sales keep growing.

The Lantern and R&E Supply teams in R&E’s Little Rock warehouse.
The Lantern and R&E Supply teams in R&E’s Little Rock warehouse.

R&E Supply, a third generation, family owned HVACR distributor, uses Lantern to set the right stock level for every item at every branch.

less inventory on hand
18%
higher inventory turns
29%
sales growth at the same time
6%

“With Lantern, every item is stocked to match what our customers actually need. It has freed up cash we can put back into the business.”

Jonathan Pope, CEO, R&E Supply

R&E Supply at a glance

  • Industry: HVACR
  • Headquarters: Little Rock, Arkansas
  • Network: 8 locations, hub and spoke
  • Catalog: About 10,000 SKUs
  • ERP: Prophet 21
  • Buying group: Blue Hawk

The challenge

R&E’s buyers manage stock levels for about 10,000 SKUs across 8 locations, and used to reset them twice a year in Excel. HVACR demand moves with the weather: too little stock sends contractors elsewhere, and too much ties up cash in slow movers.

How Lantern helps

  • Forecasts every item at every location. Models trained on R&E’s own sales history keep stock in line with real demand.
  • Sets safety stock item by item. Slow movers carry less cover and fast movers keep enough.
  • Recommends what to buy and when. Buyers review recommendations and focus on the exceptions.

Built on the system R&E already runs

Lantern connects directly to Prophet 21 and works from the sales, stock, and supplier data R&E already keeps. Buyers keep ordering in P21. No new system to learn and no consultants.

The results

Trailing 12 month sales rose to about 106% of their starting level while inventory on hand fell to about 82% of its starting level.
Trailing 12 month sales rose to about 106% of their starting level while inventory on hand fell to about 82% of its starting level.

Sales kept climbing while inventory came down and then held at its new level: a new baseline, not a one off clear out.

“I haven’t found anywhere the model’s let me down yet. And the Lantern team is amazing to work with.”

John Rummel, Purchasing Manager, R&E Supply

The Lantern team outside the Refrigeration and Electric Supply Co. building in Little Rock.
The Lantern team outside the Refrigeration and Electric Supply Co. building in Little Rock.

See what Lantern would do with your data

We run a free proof of concept on your own ERP data and show you, item by item, what Lantern would have bought.

Want to hear it from a peer first? The R&E team is happy to take a call.

Conor Leen

Conor Leen

Co-Founder & President

Conor was raised in the Irish midlands, where a close-knit community instilled in him the values of hard work, respect, and integrity. He sees those exact values in distributors and is passionate about using his talents to serve them.

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