|
With JustEnough, Massdiscounters (Game & Dion) reduced stock cover from 120
days to 70 days
Massdiscounters manages a chain of 90 large retail discount stores under the brands
of Game and Dion retail stores as a division of Massmart Holdings. Annual revenues
of over $690 million are generated from over three million SKUs with over 40,000
SKUs active in any one store.
|
|
|
- Game & Dion required a solution that would automate forecast-to-replenishment
processes of over three million SKUs
- With 120 days stock cover, they needed to reduce safety stock levels and eliminate
excesses and stock outs in inventory
- A team of approximately twenty clerks were manually editing at least 50% of the
output from the existing replenishment system, physically reviewing and handling
reams of orders
- Buyers had to get involved in the replenishment process at least 60% of the time
- Sought to improve customer service levels and the availability of merchandise
- Use an automated, exception-based system for replenishment
- Using JustEnough, improve forecasting accuracy by ensuring the continued elimination
of any variances between actual and model inventory levels
- Stock cover reduced by 42% from 120 days to 70 days
- Reduction in inventory released over $167 million previously tied up in stock
- Manual editing reduced to just 10% of the output from the existing replenishment
system
- ROI was acheived in less than three months
- Service levels increased to 93.7% for all replenished lines
- Buyers now only handle 30% of items and the remaining 70% are processed automatically
- Priority lines can now also be processed faster and with a greater degree of confidence
|
|
|