Retail Operations

Case Studies | Retail Operations Platform



Situation & Opportunity

An organization managing a large group of department stores and supermarket was growing with around 3-5 new outlets per quarter. With that growth stock and inventory management did not just become extremely complex but appeared to also provide huge opportunities for cost optimization as well as increased customer service. At the start of the project, staff at 1 department store could neither look up the inventory at other stores nor determine if any inventory would be delivered in the next coming days. As such a large amount of customer enquiries could not be serviced and no order book could be kept. Additional challenge was that the POS as well as inventory management systems was installed in an infrastructure of constant network outages that created inconsistencies in data reconciliation and reporting.


Constraints & Requirements
  • Very dispersed setup of hundreds of supermarkets as well as larger scale department stores
  • Different managerial structures and processes for procurement, purchasing and inventory control
  • Segmented approach for profitability and cost of inventory analytics
  • Different hardware and network solutions at different locations
  • Significant amount of legacy systems as well as existing inventory stock that requires data migration

Approach
  1. Upgrade of existing inventory management system
  2. Extension of inventory management system with full workflow capabilities for purchasing and provisioning
  3. Integration of RIMS for persistent data reconciliation between all online and offline database within groups systems
  4. Upgrade of existing POS systems to provide live view into inventory based on business rules and permission structures

Results
  1. 12% of revenue now driven by ordered goods from other department stores, including incremental revenues for movement charge
  2. 33% reduction in inventory cost, 26% increase in stock turn-over
  3. Fully automated purchase order generation, stock level optimization and management driven approval workflows
  4. Live analytics on stock availability and managerial reports for shops, regional offices and central procurement / management
 
 
 
Other Sections of the Turnkey Retail Operations Platform