Global retrail
Automated Replenishment System in Grocery
Global retrail

Automated Replenishment System in Grocery

4 min read
Irina Shypulia
Irina ShypuliaProject Manager
Automated Replenishment System in Grocery

The retail sector is intense, dynamic, and highly competitive. Consumers are presented with an overabundance of choice, they know what they want and they want it now.

As a retailer you have to be able to keep up with ever evolving consumer behaviour, while simultaneously being stable enough to weather any challenges you may encounter.

Therefore, you better make sure that your supply chain works like clockwork. It’s a competitive industry and if your supply chain fails to keep your shelves full of top quality products your customers will go elsewhere. Once gone they’re very unlikely to come back.

That is why you need automatic replenishment.

How do you successfully keep up with a growing market?

Let’s take a look at an example of our client and a successful retailer - Bee Market. This company has a network of so-called “next door” groceries in 30 locations in one city. It enjoys a high level of consumer traffic and retains strong competitive performance characterized by creativity, innovation and ambition.

For example, between September 2018 and April 2019 Bee Market opened three new stores, increased its turnover rate by 8%, and increased sales by 7%. The company kept its personnel level at the same level, and crucially, its supply chain automation reached 80%.

Here’s how we did it:

Bee Market’s formula for automated replenishment is not complicated, the company found an easily-integrated and technologically advanced solution that offered them the aforementioned business superpowers for a reasonable price. This was Leafio.

How Leafio affects business performance and key indicators

Leafio is a powerful analytical tool that generates up to 20 types of reports daily. Bee Market has more than 121,000 stock-keeping units (SKUs) in its inventory and 7,000 product categories. Given this amount of activity you can imagine how many reports the company’s managers would have had to write manually, with 90% of their time spent on routine spreadsheet filing.

That was before Bee Market reached out to Leafio for help in automating their supply chain processes. David Jennings, a category manager for the supermarket chain, described Leafio as “absolute magic.”

“All of the inventory I am responsible for is shown on the dashboard, I can track my top-movers, promotional goods, and new inventory all in real-time.
The system generates regular and urgent tasks for me personally, pointing out the areas which require my immediate attention. I no longer have to calculate my excess inventory, turnover rate and leftovers manually,” Jennings said.

Leafio also processes real-time data and generates ABC analysis, performance and supplier reliability reports on a daily, weekly, monthly or quarterly basis. This level of automated replenishment allowed Bee Market’s managers to focus on strategy rather than operations, allowing them to focus on growing their company.

The agile approach to automating supply replenishment system

Bee Market dispatches on average 1300 - 1400 orders per day, which is why automatic replenishment is so crucial for the company. Being able to track fluctuating demand, sales, replenishment etc is important for any sales business, but especially so for a retailer like Bee Market.

Delayed orders, expired or low-quality goods can ruin your business. That is why creating accurate, efficient and value-driven collaboration with suppliers has to be the primary goal of every retailer. Bee Market can now track, monitor, compare and review all of its supply chain partners thanks to Leafio, meaning the company is far ahead of its competitors.

Want to apply Bee Market’s success to your team or business? Then check out the benefits of intelligent inventory systems and read more about successful case studies here.

Irina Shypulia
Irina ShypuliaProject Manager

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