In the fiercely competitive world of retail, the efficiency and effectiveness of the supply chain can make or break a business. Modern-day retailers are constantly grappling with a myriad of challenges ranging from demand forecasting to inventory management. Recognizing an opportunity to refine and optimize this crucial aspect of their business, a leading cash-and-carry retailer engaged the specialized expertise of Mantu brand Valuement. The collaboration aimed not just to solve immediate problems but to revolutionize the way the retailer approached its entire supply chain, delivering quantifiable and sustainable results.
The challenge was complex: optimizing the supply chain required addressing inventory management, product master data management, ordering processes, shelf replenishment, and planogram management across multiple organizational areas.
Our plan was systematic and tailored. We started with an in-depth analysis of existing procedures and policies to pinpoint major pain points and unveil opportunities for enhancing efficiency. The next phase involved revising the distribution center’s role within the supply chain, reengineering the ordering and replenishment processes, and developing a new inventory forecasting tool design.
Enhancing the cooperation between the supply chain, buying, and sales departments streamlined the ordering process and optimized inventory levels. Inventory planners benefited from enhanced visibility through a new inventory forecasting tool, leading to more accurate predictions. Improved monitoring of SKUs without stock risk was achieved through more robust reports and adherence to planogram compliance at the store level.
The benefits were immediate and significant. The client experienced a remarkable 27% reduction in inventory level within the dry category, 36% less orders from stores and a reduction in delivery frequency. Furthermore, there was a 4% increase in on-shelf-availability, contributing to enhanced customer satisfaction.
