Nille is a leading Norwegian discount retail chain, focusing on seasonal products and selected product categories, such as candles, home interior, and disposables. Nille offers all things needed for creating the right setting for Easter, Halloween, Christmas, birthday parties, and other occasions. Nille has more than 300 stores in Norway and is also growing quickly in Sweden.
Nille faces many challenges in supply chain management. Geir Mosether, Vice President Supply Chain at Nille, describes: “As a big part of our assortment is seasonal, we are constantly phasing products in and out. In addition, many items come from the Far East, which means that lead-times from the suppliers are long and orders have to place well ahead of the start of the season. Therefore, we need to be extremely efficient in store allocation and replenishment, to ensure that we have the right goods in the right stores throughout each season, to maximize sales and minimize end-of-season residual stock.”
Managing the complexity generated by hundreds of stores, thousands of products, a highly dynamic assortment, frequent campaigns, and in many cases long lead-times from the suppliers, is impossible without efficient system support. At the onset, Nille had already implemented min-max based replenishment of its stores and point-of-sale data based forecasting and replenishment of its central warehouse. There was, however, still room for improvement.
Anders Grude, Supply Chain Controller at Nille, explains why the company decided to implement a new forecasting and replenishment solution: “A key issue for us is to attain real integration between the stores and the central warehouse. With RELEX’s solution, we will be able to use the stores’ order forecast as the basis for purchase planning at the central warehouse. In addition, being able to plan and control both allocations and continuous replenishment in the same system is a big step forward. Last but not least, we have high expectations on the impact of store and SKU level optimization of inventories and forecasts.”
Johanna Småros, Co-founder and Director of RELEX’s Scandinavian operations, is enthusiastic about the co-operation with Nille: “Retail and multi-echelon supply chains are definitely core areas for RELEX. I am looking forward to further strengthening our track record of rapid and successful implementations with high business impact. In addition, as Nille’s supply chain team is very competent, I am positive that our co-operation will foster new innovations and further improve our product offering.”
The implementation of RELEX’s forecasting and replenishment solution at Nille will start in March 2013.