OXXO, a subsidiary of FEMSA, is a leading small-format food retailer with over 23,500 stores across Mexico, Colombia, Brazil, Chile, and Peru. As a pioneering chain designed to meet the daily needs of their customers, OXXO is integral to FEMSA’s comprehensive retail, beverage, and logistics portfolio. With a significant presence in the retail sector, OXXO has continually expanded their footprint and operational scope, driven by a commitment to innovation and customer satisfaction. 

Transforming Forecasting Processes for Enhanced Efficiency and Accuracy 

As part of OXXO México’s digital transformation strategy and preparation for future expansion, the need to enhance product demand forecasts became a critical focus. OXXO required a solution that could not only increase accuracy but also integrate seamlessly with their existing operations across their extensive network of more than 23,500 stores in Mexico and other countries. 

OXXO México selected RELEX in September 2023 after participating in RELEX Live 2022. The decision was driven by the solution’s advanced AI and machine learning capabilities, which aligned with OXXO’s goals of improving product availability and optimizing inventory levels.  

The project kicked off in October 2023, with a focus on forecasting for stores, channel forecasting, promotion forecasting, forecast sharing, and incorporating factors like weather-based forecasting. 

The project began with a pilot phase, focusing on 13 key product categories that represented 60% of OXXO’s total sales. The initial forecasts were available by December 2023, with the official go-live for pilot categories by April 2024. The rollout continued in waves, with additional categories going live in May and June 2024.  After the rollout, OXXO has since decided to use the improved demand forecast together with the RELEX replenishment solution, signaling a continued and strengthening strategic relationship in a core area of their supply chain while unlocking additional benefits such as increased forecast accuracy, improved inventory management, higher product availability, and enhanced operational efficiency. 

RELEX partner WYSUPP supported the implementation of the system. Despite the complexity of the project, it ran smoothly and was delivered on time.  

Following this success, OXXO has already begun the next phase of their journey to implement RELEX’s replenishment capabilities. This phase is expected to deliver even greater benefits by optimizing their end-to-end supply chain, further enhancing efficiency, and ensuring the right products are always in the right place at the right time. 

Weather-Based Forecasting Drives Notable Results 

The project’s early results indicate a significant improvement in forecast accuracy, particularly in categories sensitive to weather conditions. By integrating weather-based forecasting, OXXO has seen noticeable accuracy improvements in various product groups, directly impacting planning efficiency, product availability, and inventory optimization. 

For instance, in key product categories: 

  • Sports Beverages: Achieved a 4.8 percentage point (pp) improvement with the standard forecast and enhanced with weather-based forecasting. 
  • Unflavored Water: Saw a 3.7 pp improvement with the standard forecast, and weather factors. 
  • Beer: Experienced an 8 pp improvement with the standard forecast and weather feature. 

In addition to these more obvious weather-sensitive categories, RELEX also improved forecast accuracy in other categories: 

  • Wines & Liquors: A 3.4 pp improvement compared to previous forecasts.  
  • Groceries: Experienced a 2.3 pp improvement with standard forecast.  

These outcomes highlight the solution’s capability to not only refine general forecasting but also enhance accuracy in areas where demand can be unpredictable due to weather variations. This has led to more effective planning, better product availability, and optimized inventory levels across OXXO’s extensive network. 

“The improvements in forecast accuracy across various categories have been remarkable. By incorporating weather data, we’ve been able to better predict demand fluctuations, ensuring our shelves are always stocked with what our customers need,” said the Demand Planning and Replenishment Manager at OXXO. “Additionally, seeing significant forecast accuracy improvements in less obvious categories was a pleasant surprise. The ability to anticipate demand changes due to weather variations has helped us maintain optimal inventory levels.” 

One of the most significant achievements has been the reduction of manual work and the consolidation of forecasting processes into an advanced, user-friendly interface. This has not only saved time but also provided OXXO with more accurate data for decision-making. 

“Switching to RELEX’s forecasting solutions has made a huge difference for us. We’ve cut down on so much manual work and now have everything in one easy-to-use system,” the Demand Planning and Supply Chain Director at OXXO. “It’s saved us a ton of time and given us much better data to make smart decisions. This has really boosted our efficiency and helped us serve our customers better.” 

OXXO’s journey with RELEX highlights the power of advanced forecasting tools in driving operational efficiency and supporting business growth. As OXXO continues to expand their reach across Latin America and globally, the partnership with RELEX will play a crucial role in ensuring that their stores are equipped with the best possible tools to meet customer needs.