2018

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COMPANY

Nationwide drogerie chain

The PROSTOR company is a nationwide drogerie chain with about 430 sale points. Product mix of more than 20,000 SKU, more than 200 brands

SITUATION

Inventory management performance issues

•    Inventory levels were set for all units broken down by ABC groups on a fits-all basis.
•    Demand levels were not balanced for chain parts suppliers - distribution center - sales points.
•    Supply volumes were not connected with expansion plans, merchandise display changes, and planned marketing events.
•    Manual demand calculation for promotional events for 5000+ events monthly.
•    Unbalanced distribution center load  during marketing events preparation results in significant delivery delays to sale points
•    Uneven load on the DC during the period of preparation for the action - delays in the assembly and delivery of goods to the chain stores.

SOLUTION

1.    Implemented a scalable, automated inventory management system for a layered supply chain.
2.    Technology for detecting optimal inventory level regarding profit by sales point by SKU introduced.
3.    End-to-end demand planning technology with a focus on supplier-distribution center - sales point interaction efficiency, taking into account the planned changes in the display of goods in stores, was introduced.
4.    Four supply channel network management schemes have been configured.
5.    Fully automated demand planning process with marketing events effect and replenishment during the promotions in place.

RESULTS

Rapid grow supported effectively

  • Lost sales due to out-of-stock reduced by 31%.

  • Inventory level reduced by 12%.

  • Overstocks at the end of marketing events were reduced by 30%.

  • Project costs fully recouped after 3d month in service

  • The implementation of the project fully recouped its cost already in the 3rd month in service