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Learn how this Latvian retailer shifted to central planning for all 260 stores in its territory and introduced effective change management with SAP Forecasting and Replenishment for Retail. See how the software helped it reduce stock and waste, increase logistics efficiency, and refocus staff on customer service.
Objectives- Handle all forecasting and replenishment processes in one central solution
- Achieve better service levels and product availability by sharing information with vendors and internal stakeholders
Why SAP
- Functionality that supports store and distribution centers and includes multiechelon replenishment
- Software suitable for automating forecasting and ordering, including promotional demands for most of the assortment (fresh, dry, near-food, and nonfood products)
Resolution
- Implemented functionality covering all three operating countries – Estonia, Latvia, and Lithuania – in one forecasting and replenishment project
- Included 259 stores as well as distribution centers
- Shifted responsibilities to central planning
- Introduced effective change management to influence the user mind-set through building trust
Benefits
- Reduced stock and waste
- Increased sales through better product availability for customers
- Higher logistics efficiency through order balancing in distribution centers
- Greater focus of store employees on customer service
- Recognition of project's excellence by receiving the gold medal in the "business transformation" category of the 2015 SAP Quality Awards in EMEA
82 % Sales share of products ordered automatically
> 20 % Product availability, depending on category
2.4 Project payback time (projected)