FMCG retail chain
FMCG retail chain. The product-mix is from 3,000 to 10,000 SKU according to the size of sales point, 100+ suppliers, lead time from 1 to 3 days. Annual revenue was about $350MM
Supply chain performance issues
DIXY contacted Inventor Soft to determine the efficiency reserves of managing the gastronomic product mix and the FRESH product mix. DIXY faced a large volume of disposal of expired perishable goods, while the service level for perishable goods on the shelves deteriorated. The overall frequency of replenishments (the number of lines on the loading bill) of gastronomy has increased, which led to downtime of goods at the retail outlet and increased lead-time (the period of replenishment from a replenishment order to release to shelves).
During the pilot project we performed the following steps:
Transactions analysis for a pilot product mix and identified efficiency reserves regarding the inventory management system performance
Demand analysis by product groups and developed a demand forecasting methodology for fresh
Retro-modelling of inventory management "as it would be if managed with INVENTOR SYSTEM"
Control parameters optimization for FRESH gastronomy and products
A lot of latent possibilities unveiled as a result of pilot project:
Gross profit raised by 60%
Sales up by 14%
Inventory level decreased by 22%
Service level increased by 6%
Working capital decreased by 60%
Replenishment frequency decreased by 43%