Automatic Replenishment Solution
RELEX’s automatic replenishment system has cut our customers’ stock levels by up to 30%, out-of-stocks by as much as 80% and reduced spoilage of fresh goods by up to 40%. At the same time we’ve boosted our customers’ sales and freed store staff from hours spent on routine ordering.
Go the full distance with automatic replenishment
RELEX’s combination of outstanding computational power, intelligent algorithms and user-defined business rules, have brought automatic replenishment to all product categories, not just the straightforward ones. And it’s the most challenging product groups – fresh produce, seasonal lines, new products, and promotions – that have the most to gain from automating replenishment.
“The results exceeded our expectations. We achieved higher on-shelf availability and very efficient centralised replenishment, allowing staff in our stores to spend more time on customer care.”
Don’t settle for functional, demand optimal
Our automatic replenishment system places orders for millions of SKUs every day. It considers all the factors that a seasoned store manager might, and many more, but with greater consistency and accuracy.
Accurate daily forecasts
Forecasts are optimized for each store, item and day, accounting for holidays, seasons, promotions, price changes, weekday patterns, shelf space, and weather forecasts, as needed.
Automatic use of bill of materials
Forecast demand for end products and automatically distribute forecasts to relevant sub-components, based on product structures, displays or recipes (BOMs), for efficient replenishment.
Optimized stock levels
Stock levels are optimized based on the priority or role of each SKU to maximize sales and shelf availability, while minimizing inventory and waste.
Integration with planograms ensures attractive displays by keeping shelves well-stocked and sends alerts when space/demand mismatches occur.
Pre-emptive waste control
Spoilage forecasts use estimated, or actual, batch-level ‘sell-by’ dates to increase availability by prompting replenishment before stock spoils and to flag items that need to be sold quickly.
Efficient in-store operations
Proactive delivery planning enables stores to synch deliveries with staff availability. Delivery volumes can be balanced over the week to ensure the smooth flow of goods.
Using accurate projections of future inventory and orders, exceptions (such as unusually large numbers of order lines) can be identified and dealt with before they become problematic.
Integrated retail planning
Time-dependent parameters allow for planning changes, such as increasing shelf space for a promotion, well ahead. The effect of the change is immediately visible in the stores’ order projections.
Highlighted features of RELEX’s automatic replenishment system
Meticulous replenishment results in fresher products
Fresh products make the greatest demands of accurate forecasting and replenishment. Errors in order quantities and timing lead to stock-outs, waste and poor store image, with a direct impact on the bottom line. The keys to success are
- 1. accurate day-level forecasting, accounting for day-to-day patterns across the week, seasons, holidays, and weather effects;
- 2. dynamic day-level safety stocks, adjusting stock levels to consumers’ shopping patterns over the week, and
- 3. automatic monitoring of projected spoilage to avoid placing risky orders and prompting stores to markdown stock when needed.
By taking these steps, our customers have managed to increase shelf availability while saving millions by reducing spoilage.
Pro-active capacity planning secures supply
Our automatic replenishment system has the power to calculate projected orders and deliveries at a store/day/item level months ahead. So it provides exceptional transparency into potential supply chain bottle necks such as receiving capacity in stores, picking or storage capacity at the distribution centers, or transportation capacity for each route.
Using scenario planning to adjust order plans, our customers have reduced peak volumes by more than 15 %, resulting in significant cost savings and minimized supply chain risks.
Pre-emptive exception handling for full-automatic replenishment
In retail chains, the number of SKUs to be replenished typically ranges from several hundred thousand to tens of millions. This means that manually reviewing every order line is impossible.
Instead, basic replenishment is best run on full-automatic. However, because surprises do happen, especially in retail, exception alerts that prompt planners to actively respond to unusual results, is essential.
Because our software continuously calculates projected orders and stock positions for days ahead, exceptions can be reviewed well in advance, allowing ample time to solve potential issues before they become problems. And nobody need be awake in the small hours to oversee the ordering process.
Norway’s largest discount variety retailer Europris transformed its replenishment operations and has reduced ordering time by 85%.
Expert, the Finnish home electronics retailer, uses RELEX’s automatic replenishment system to give staff more time to focus on customers and sales.
“Stores feel as though they have an extra employee handling ordering, and that employee is RELEX.”
– Marco Pair, Supply Chain Manager, Europris
Would you like to know more?
We are happy to discuss your retail optimization needs further, and show how automating your replenishment would streamline your daily operations.