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Coop Denmark Deploys New Tools to Cut Waste in Its 1,200 Stores

Jan 16, 2017 3 min

Denmark’s biggest retailer, Coop Denmark, expects to save tens of millions through better supply chain management by using RELEX Solutions.

Danish retail giant Coop invests in new technology to ensure more products end up on shelves and far fewer in the bin. Coop, which is in the forefront of worldwide efforts to cut food waste, is building on its relationship with RELEX Solutions to use its integrated retail and supply chain planning solution.

Coop Denmark, which operates the Fakta, Irma, Kvickly, SuperBrugsen and Dagli’Brugsen supermarket chains, already uses RELEX’s space planning tool and was seeking to upgrade its technology to cut inventory levels in its DCs and increase shelf availability. The upgrade means Coop will be using RELEX’s solutions in their entire planning operation, optimizing their supply chain from their DC’s all the way to store shelves.

“By transforming our retail and supply chain planning with RELEX, we’ll be able to get produce to customers quicker, fresher and even more reliably. Plus, the savings we make will help us deliver even better value.” says Claus Byskov, Logistic Director at Coop.

At present Coop’s purchasing is driven by its distribution centers rather than by PoS data as the systems are not integrated, and as a result, its purchasing focus has been more on its DCs than its stores. The group wants to see that balance reversed and store and DC ordering properly integrated.

Coop also wants to increase automation, keep a close eye on forecast accuracy and introduce more data-based allocation and campaign management so that it reflects demand at individual stores. That’s particularly important for the business as a large part of its sales are driven by campaigns and promotions.

When deciding which system to use for its supply chain planning, Coop only wanted the best of breed. “We checked out pretty much every available solution,” says Byskov. “RELEX was able to prove it could handle our complex set up and introduced us to grocers already using its solution. We could see first-hand the impressive results those companies were getting.”

Moreover, RELEX’s power and flexibility are critical. “Coop is a €6Bn a year business. The volumes are huge and the diversity is considerable. RELEX is expected to deliver massive gains in processing speed and make sure we can adapt the system to every use in our operations without having to call for help. No other solution offered that.” says Byskov.

RELEX Solutions, which has been the fastest growing provider of integrated retail and supply chain planning solutions in Europe for the last five years, has customers in the grocery sector all over Europe. Cuts of between 20% and 40% in fresh produce spoilage have been common.

“During our initial discussion with Coop Denmark, it became clear that they wanted a highly automated and integrated solution with the possibility to increase their service levels, have the right stock at both DC and its shops and moreover, reduce their waste,” says Keld Bograd, Sales Manager at RELEX Solutions. “This was exactly what we were able to provide. Coop Denmark got a tool that’s set up for all their current requirements and will adapt quickly and easily to their future needs. Together with RELEX, Coop will save tens of millions.”

About Coop Denmark
Coop Denmark A/S is Denmark’s largest supermarket chain. The company operates more than 1200 stores across Denmark under the following trade names: Kvickly, SuperBrugsen, Dagli’Brugsen, LokalBrugsen, Mad Cooperativet, Irma, Fakta and Fakta Q.

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