Finland’s leading business newspaper, Kauppalehti, published a news article (May 7, 2012) about how the purchasing and logistics company Tuko Logistics now uses RELEX systems to offer customers, including Stockmann and Suomen Lähikauppa, accurate demand forecasts. The increased accuracy of the forecasts has led to a marked reduction in wastage.
Some three years ago, Tuko Logistics investigated the possibility of improving its supply chain management and increasing shelf availability, especially for fresh products. “We tested various options and settled on RELEX, its major advantage being its inbuilt flexibility,” says Lauri Loikkainen, Planning Manager at Tuko Logistics. “For us at Tuko Logistics this was key, in that our customers are so different. Stockmann Delicatessen is a completely different type of customer than Suomen Lähikauppa, with its nearly 700 small convenience stores.”
At much the same time Stockmann was looking for a good replenishment solution, and also found RELEX. Kimmo Jokilahti, Development Manager at Stockmann, says the investment paid for itself within months through reduced spoilage and increased shelf availability. “Shelf availability is currently at 98.5% and for some articles it’s even higher than 99%.” On average, spoilage decreased by 40% and for some fresh products the improvement is even greater. The impact on results is clear.
Suomen Lähikauppa has benefited from improved forecasts relating to seasons and bank holidays, says Suomen Lähikauppa Director Esko Sutelainen.
The next step is to extend cooperation to involve the suppliers, with the aim of reducing inventory risk at every point in the supply chain. All three participants noted that the development also benefitted customers: “The consumer enjoys fresher products and an efficient supply chain reduces the pressure to raise prices.” team concludes.