Building a Foundation for Sustainable Growth
In the competitive discount retail sector, striking the right balance between availability, inventory efficiency, and operational costs is essential for sustainable growth. Puuilo, one of Finland’s largest store chains specializing in consumer goods, has built a strong market position through its wide assortment of DIY and garden products, household essentials, pet food, and more. With over 50 stores and a growing online presence, Puuilo’s successful format is centered on convenience, selection, and affordability, which have made it a leader in the Finnish discount retail landscape.
As the company continued to grow, its decentralized supply chain model revealed limitations. Puuilo’s manual ordering process relied on store personnel visually assessing stock levels and using local knowledge to place orders. While this approach allowed stores to address localized demand, it led to inconsistencies across their network and hindered the development of a cohesive inventory strategy. What worked in the early stages of growth began to limit scalability and operational efficiency, making it difficult to scale.
Puuilo needed a centralized, data-driven supply chain approach to support continued expansion while maintaining cost efficiency. The business required a solution capable of scaling with its growing operations without losing market responsiveness. It was important that the system they chose accounts for each product’s sales history and recognized demand patterns, including seasonality, to ensure timely replenishment and inventory variability during off-peak periods. Additionally, the new approach needed to automate order placement in a way that considered supplier freight constraints and minimized the capital tied up in excess stock.
A Methodological Approach to Supply Chain Transformation
Following an evaluation of potential vendors, Puuilo selected RELEX to implement advanced forecasting and replenishment capabilities across its store network and distribution center. The objectives were to centralize the ordering process, replace manual ordering with intelligent automation, and introduce a scalable model for demand planning that preserved store-level insight. Puuilo approached the implementation strategically, with a phased rollout structured around three logistics supply routes: distribution center to stores, suppliers to the distribution center, and directly from suppliers to stores.
Each route was applied during a two-month pilot involving a select group of suppliers and store locations. In this initial phase, the platform automatically generated order proposals, which were reviewed by Puuilo store staff before processing the orders. This helped build trust in the system while gathering feedback to fine-tune the models. Suppliers and stores were then onboarded in controlled batches, expanding the platform’s role in Puuilo’s replenishment process. This methodical approach helped minimize risk, ensured a smooth transition, and gave Puuilo time to adapt to the new centralized model.
Delivering Measurable Impact for Retail Success
The RELEX platform has significantly transformed Puuilo’s supply chain operations. Manual processes have been replaced with automated, intelligent planning that delivers measurable improvements across the business. Puuilo established a scalable ordering model, enabling supply chain agility and supporting continued growth without requiring increases in administrative effort. The platform provides greater visibility into supply chain dynamics, empowering Puuilo to respond more effectively to shifting consumer demands and market conditions.
As a result, Puuilo achieved a 4.5% reduction in inventory levels for like-for-like items, reflecting greater inventory precision that did not negatively affect product availability. Store operations also experienced substantial benefits from centralization. By automating routine ordering tasks, store personnel saw up to a 30% reduction in workload, allowing them to focus on customer service and other value-adding activities that improve the shopping experience.
“The shift to centralized ordering was a significant operational change, but thanks to a phased rollout and close collaboration with RELEX, we achieved a smooth transition,” said Markku Lampela, Purchasing and Logistics Director at Puuilo. “We now have a scalable and efficient ordering model that supports our growth, allowing our stores to focus on serving customers rather than managing replenishment manually.”
By leveraging advanced forecasting and replenishment capabilities, Puuilo has improved their ability to deliver exceptional value and service to their customers. Their journey with RELEX illustrates how traditional retail operations can benefit from modernizing their operations with technology without compromising the local market insights that drive differentiation. Puuilo has enabled a more efficient, data-driven supply chain that supports its commitment to providing a wide product assortment at competitive prices, reinforcing its position as a leading player in Finland’s discount retail market.