Krónan Improves Product Availability and Inventory Efficiency with RELEX

Icelandic grocer achieves stronger availability, better inventory productivity, and lower average supply through distribution center forecasting and replenishment

Krónan, one of Iceland’s leading grocery retailers, has improved product availability and supply chain efficiency with RELEX Solutions. Working with RELEX and implementation partner, Supply Chain Company, Krónan implemented forecasting and replenishment across their distribution center (DC) network. Since completing the project, Krónan has seen product availability and inventory turnover improve, reflecting a leaner, more responsive planning operation that supports continued sales growth.

Krónan serves customers across Iceland, managing approximately 10,000 SKUs with a strong emphasis on fresh produce and everyday essentials at affordable prices. They faced the challenge of maintaining strong product availability while keeping inventory levels lean and minimizing spoilage and handling costs. Manual ordering processes were consuming significant planner time and limiting their ability to respond quickly to demand shifts.

The RELEX platform was introduced to capture demand signals across Krónan’s product range, including short shelf-life fresh categories, and generate replenishment recommendations that account for supplier lead times, sales patterns, and inventory targets.

Using RELEX for DC forecasting and replenishment, Kronan has achieved the following annual results (October 2024-September 2025), when compared to the prior year.

• 2.7% improvement in product availability
• 7.5% improvement in inventory turnover
• 11% increase in sales while only increasing inventory by 3.8%
• More than 50% reduction of time for a full-time employee spent on ordering and planning, freeing up time to additional value adding initiatives.

“Since implementing RELEX, we have seen clear improvements for both our customers and our teams. Product availability and inventory turnover have improved, strengthening the shopping experience and customer satisfaction,” said Bjarki Jónsson, Director of Supply Chain Management, Krónan. “At the same time, the system has reduced manual workload and made every day planning more proactive and meaningful. We now spend less time on repetitive tasks and more time creating value for customers and the business. The combination of better service, fresher goods, and a more empowered workforce is incredibly important to us as we continue to grow.”

In addition to the availability and inventory gains, Kronan has achieved an 8.3% reduction in days of inventory. Using AI-enabled, data-based decision making, they have optimized supply chain processes, driving more operational precision and freeing up the team to focus on exceptions and higher-value decisions.

“This project with Krónan demonstrates how data-driven planning can fundamentally reshape supply chain performance,” said Olav Pannenborg, CEO, Supply Chain Company. “By combining RELEX technology with deep implementation expertise, we have enabled a step-change in how decisions are made: more automated, more accurate, and ultimately more impactful for both the business and its customers.”

“Seeing Krónan translate better planning into real business results is exactly what we aim for,” said Tiina Kanninen, SVP Customer Success, RELEX Solutions. “By automating DC replenishment, the team has been able to keep shelves stocked, and free up planner capacity. These are outcomes that matter directly to Krónan and their customers.”