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ICA Sverige Enhances Inventory Efficiency and Forecast Accuracy with RELEX

Mar 19, 2024 2 min

Sweden’s largest grocery retailer reports substantial improvements with AI-driven forecasting and replenishment solution. 

ICA Sverige AB (ICA), Sweden’s largest and leading grocery retailer, has realized notable improvements to their sustainability measures and inventory cost savings using RELEX Solutions. The gains come after implementing RELEX forecasting and replenishment capabilities.

ICA has five main distribution centers (DCs) and some 1,300 stores across Sweden. The independent ICA retailers own and operate their own stores and benefit from coordinated sourcing, logistics, market communication, and store development, allowing each retailer to tailor concepts and offers to local demand, all the while keeping their costs in check. As a long-standing customer of RELEX, ICA is committed to enhancing the sustainability and efficiency of their supply chain with innovative, AI-driven planning solutions.  

Since adopting RELEX for their forecasting and replenishment solution in 2017, ICA has experienced significant improvements in their supply chain management processes. In the last two years, to elevate ICA’s operational processes, RELEX and ICA initiated a project focusing on forecast accuracy and the dynamic calculation of safety stock, both of which are essential for navigating seasonal variances and peak periods like the year-end holiday season. These strategic initiatives have resulted in a noticeable increase in forecast accuracy and a reduction in inventory levels and safety stock, ensuring ICA remains a leader in the grocery retail business while maintaining the efficiency of its distribution network. 

The results have exceeded expectations, driving operational efficiency and cost savings for ICA. 

Some of the results ICA achieved include the following:  

  • 32% decrease in safety stock inventory: Utilizing RELEX has led to a reduction of around 32% in safety stock inventory  
  • Reduction in capital tied to safety stock: Freed up capital by minimizing the amount tied up in safety stock, allowing for more strategic investments in other areas of the business 
  • Increased forecast accuracy by 6.69pp through recent improvement initiatives, leading to improved sustainability through reduced waste 

“Relying on RELEX Solutions to help us achieve our goals has proven to be a great choice,” said Andreas Persson, Head of Replenishment at ICA. “Not only has our collaboration produced tangible results, such as the 32% decrease in safety stock inventory, but working with RELEX has been easy and innovative.”  

“These results showcase that with our solutions, our customers can reach their goals on multiple fronts at the same time: reduced operational costs, more sustainable business, and greater forecast accuracy,” said Tiina Kanninen, Vice President of Customer Success at RELEX Solutions. “We are very pleased to get to work with the wonderful ICA team.”