AgroHub
Georgian production and retail company AGROHub automates its inventory optimization and replenishment processes with LEAFIO. |
Georgian production and retail company AGROHub automates its inventory optimization and replenishment processes with LEAFIO. |
Natural products supermarket chain, that operates in two major cities in Georgia.
Locations:
4
Total assortment:
10,000
AgroHub is the first vertically integrated retail company in Georgia to offer organic groceries both - self-produced and imported. The notion of production facilities came from the original mission of the company - to ensure access to food of the highest quality. That's why AgroHub took over the control of production and its offer to customers at every level - from the purchase of raw materials to sales planning. This, in turn, has created efficiency challenges that LEAFIO has helped to solve.
AgroHub was founded in 2016, and today it is a well-established company :
By the time the optimization implementation had started, AGROHUB had already used ERP system with deep analytics on inventory, cost, operational processes, finance, had established full production and trade cycle management.
Inventory management challenges were revealed during AgroHub's active scaling phase and were primarily connected to inaccurate orders since the ordering process was decentralized and manual it led to:
The company management decided to implement a replenishment automation solution.
AgroHub considered multiple inventory optimization vendors, and the majority of them did not fit the requirements.
Some of them did not have smart algorithms for auto-ordering, and the problem for the buyers would not be solved. Some solutions consisted of a number of disparate modules, which led to the understanding that it was unlikely to simplify already complex production and trading processes due to the growing number of control points.
Individual solutions proved to be prohibitively expensive and too functionally complex to implement, while AGROHUB was looking for the optimal balance between the cost of the solution and the clarity and speed of its implementation in the business.
During the search, the company management sought the advice of several of their partners in Georgia who had already used LEAFIO Inventory Optimization and noted the following:
All of the factors above tipped the scales in LEAFIO's favor, and the first store was launched as a pilot further scaled to the entire chain after receiving positive results.
Like for like analysis of the first three months, in comparison to the same period last year revealed:
These figures were achieved primarily by reducing errors and supply chain disruptions due to the conversion of orders to automatic mode.
"More correct than manual, optimized for the current dynamics of demand auto-ordering of goods - in our case, these are:
"For me, retail automation is first and foremost about less chance of error in tracking sales and order planning. And LEAFIO Inventory Optimization proves this convincingly in our business practice," he adds.
Leafio Inventory Optimization