Suomalainen Kirjakauppa, a major Finnish chain of bookstores, has decided to deploy the RELEX Processor and RELEX Optimizer software in order to increase store replenishment efficiency. The deployment decision was preceded by a successful pilot phase that lasted several months and resulted in concrete, measurable benefits.
Pekka Kuurne, logistics manager at Suomalainen Kirjakauppa explains: “RELEX’ software enables us to move from semi-automatic to fully automated store replenishment. One of the main benefits of RELEX’ solution is that it takes into consideration the different stores’ individual sales patterns, shelf space restrictions, and presentation stock targets. In addition, RELEX’ solution enables optimized replenishment frequencies, which reduces handling costs in the stores.”
“We conducted an extensive pilot with RELEX’ software, lasting several months. The pilot implementation produced clear, tangible results: We were able to improve both inventory turn-over and shelf availability in the stores. Furthermore, store personnel needed to spend less time ordering and receiving goods than before.”
The pilot phase included Christmas, which is a challenging time from a store replenishment point of view – there is huge increase in sales during a couple of weeks and the book titles change almost completely from one year to the next. RELEX created new forecasting models for estimating Christmas demand, and the results were very good: “We were taken by surprise by the good results produced by the new forecasting models! We had considered Christmas to be a real challenge to statistical forecasting, but RELEX’ models produced excellent results. In practice, we were able to improve shelf availability while at the same time reducing end-of-season stock. Minimizing end-of-season stock has a big financial impact since most of the titles become obsolete after Christmas”, Pekka Kuurne comments.
The deployment of RELEX Processor and RELEX Optimizer in the stores of Suomalainen Kirjakauppa will take place during 2008 and 2009.
For more information:
Logistics Manager Pekka Kuurne, Suomalainen Kirjakauppa, +358 40 733 4157
Managing Director Mikko Kärkkäinen, RELEX Oy, +358 50 596 2322