Emerging category - FreeFlow

Entrepreneur: Alan Scroope
Business Activity: Software Development

Based in Tralee, Co. Kerry Freeflow Ltd was founded in 2001 to provide technology for world class inventory asset management which assists customers improve product lifecycle profitability. The company currently employs 15, three of which are based in the Californian office, the remainder are in Ireland.

The company’s innovative resources help customers to promote and discount their inventory to existing clients; auction and liquidate their inventory to liquidators and reprocess inventory to recycling companies.  FreeFlow has the patent on this technology which allows the customer
to control the above processes on-line, at the touch of a button.

Up until recently the business was focused on Inventory liquidation/ liquidation recycling, however the Inventory management is a new development, a unique software offering and generates license fee revenues going to the bottom line.

To date, Freeflow services 12 clients located across Europe, USA and Asia. Among its customers are leading technology providers including Motorola, Apple, CISCO, Microsoft, Fujitsu, Logitech and ATP.

Entrepreneurial Questions

What Vision prompted you to start the business?
Having worked as an accountant in the industry where each month my employer had $30 million dollars of ‘at risk’ inventory I felt that there was a gap in the systems/tools that allowed my employer to deal properly with this continual problem. There was no systematic or transparent solution that would allow companies to promote this stock to their existing customers or help them to liquidate this stock into emerging markets or geographies where this inventory could be cannibalized.  In today’s world, the manufacture of goods is largely carried out in Asia. To manufacture product in Asia means that lead-times increase as goods will need to be transported from Asia back to your warehouse. This means that you need to forecast your demand before you place your order on your Asian supplier. In the Hi-Tech world today, it is a common industry fact that forecast accuracy is at best 85%.This means that 15% of everything that is manufactured is deemed to be ‘at risk’ and may never sell. If you take it that our current customers are each manufacturing $1 Billion dollars of inventory every year, $150 million dollars of inventory is at risk. This was the problem statement for our clients but the opportunity for FreeFlow.

Describe your progression from start to current?
Personal Progression: I resigned my position with my employer and was supported by my wife for 12 months. I started the business in the upstairs bedroom of my mother-in-law's house. Currently we are building our new 20,000 sq ft headquarters in Tralee and opened an office in Silicon Valley in San Jose in 2005.

What was the biggest risk you have taken?
Resigning my position and using whatever funds I had to develop this system without knowing if it would work and having no clients to endorse it.

Who or what has contributed most to your success?
My wife.

In terms of business the main success factor has been keeping the cost model variable and outsourcing where possible.  I could not afford to take on headcount so I approached some senior executives who I had worked for and and offered them a stakeholding in the business along with a commission based on the business that was generated from the Hi Tech companies they introduced me too. I had a variable cost sales force. If they earned – FreeFlow earned.

What is your biggest business achievement?
Winning the Best Service Provider Award at the Global Retailer conference in San Antonio Texas.

What is the best piece of business advice you ever received?
Think about the worst case scenario and have a solution to deal with it.

Express the biggest challenge you see your industry facing?
Manufacturing to Order out of Asia.

Name a famous international entrepreneur you most admire and why?
Dermot Desmond – Successful but seems to have lots of fun along the way.

How do I recharge my batteries?
Having fun with friends and family.