Local Discounter is known for its commitment to offering high-quality products at competitive prices. With a strong emphasis on operational efficiency, Local Discounter continuously seeks technological advancements to streamline its business processes. To enhance its inventory and merchandising management, the company turned to the LEAFIO AI Retail Platform, incorporating LEAFIO Shelf Efficiency and the Inventory Optimization solution. The solutions were implemented in two stages.
Project 1: Implementation of LEAFIO Shelf Efficiency
Merchandising processes at Local Discounter were not systematized. Category managers created simplified planograms using Excel, with varying levels of detail—some were based only on category width, while others included product names and barcodes. Suppliers with agreements often managed shelf space on their own terms, using manual measurements and arranging products as they saw fit.
Challenges in Shelf Management
- No dedicated merchandising function; category managers handled planograms
- Inconsistent product placement across stores
- Lack of control over supplier-managed displays
- Ineffective planogram control, with photos shared informally via messaging apps
As the retail chain expanded, Local Discounter recognized the need to simplify and automate its planogram management processes. This initiated the search for a comprehensive solution.
Why LEAFIO Shelf Efficiency?
During their search for a shelf management solution, Local Discounter evaluated multiple products. Many were either prohibitively expensive or lacked essential functionalities. LEAFIO Shelf Efficiency precisely met their requirements, offering an all-in-one solution for planogram creation, compliance monitoring, and data-driven shelf space optimization.
Implementation Process
The implementation of LEAFIO Shelf Efficiency followed a structured approach:
- Business audit and data integration
- Pilot phase: Creating planograms for a selected category in a pilot store
- Scaling: Rolling out planogramming to additional locations
The implementation helped streamline merchandising operations by centralizing planogram management and ensuring compliance. Through regular online meetings, Local Discounter’s team actively participated in process optimization, ensuring the best possible outcomes.
Key Results from Shelf Efficiency Implementation
- 28.3% increase in sales
- 26.3% increase in unit sales
- 23.9% increase in sales per meter
- 19% increase in sales per facing width
“LEAFIO Shelf is an excellent platform for our retail merchandising. We moved from basic spreadsheets to real-time visualization. It has simplified work for both stores and the commercial department. The extensive reporting capabilities are incredibly useful. Highly recommend this platform.” — Sergey Baltaga, Planogram Optimization Specialist
Project 2: Implementation of LEAFIO Inventory Optimization
Before adopting LEAFIO Inventory Optimization, Local Discounter managed its inventory using an accounting system. The ordering process was decentralized, involving 72 store managers responsible for processing orders. With an average of 300 suppliers, the network sought an automated solution to reduce human intervention in purchasing. Each store manager spent 2-3 hours on order creation, leading to inefficiencies and a high risk of overstocking due to the human tendency to over-order. The lack of centralization also resulted in limited control and transparency in the order formation process.
Challenges in Inventory Management
- Delayed product ordering
- Inaccurate order quantities
- Excess inventory
- Lack of control and transparency in the ordering process
- No dedicated tool for managing promotional orders
Trigger for LEAFIO Inventory Optimization Implementation
Store managers were heavily involved in order processing, consuming significant resources. The key driver for adopting the platform was the necessity to centralize order management and optimize inventory based on key performance indicators such as inventory turnover, availability, and stock levels.
Why LEAFIO Inventory Optimization?
Local Discounter initially considered Symphony RetailAI as an alternative but found LEAFIO Inventory Optimization to be the best fit in terms of both functionality and cost-effectiveness. LEAFIO AI provided an intelligent, automated ordering system that eliminated inefficiencies and improved inventory turnover.
Implementation Process
The implementation of LEAFIO Inventory Optimization followed a three-stage approach:
- Business audit and data integration
- Pilot phase: Integrating an initial assortment for automated ordering
- Scaling: Expanding Inventory Optimization across all stores
By centralizing order management and introducing automated ordering, the platform significantly reduced human intervention while improving order accuracy and stock availability.
Key Results from Inventory Optimization Implementation
- 20% increase in sales
- 0% increase in average inventory levels
- 10% improvement in product availability
- 15% improvement in inventory turnover
- 80% reduction in store staff workload
“The implementation allowed us to expand our assortment by 30-70% in some cases compared to pre-automation levels. The algorithm utilizes the entire assortment matrix, eliminating reliance on individual managers’ discretion.” — Alexander Mankosh, Project Manager
Continuous improvement and collaboration
After completing the implementation phase, the LEAFIO AI and Local Discounter teams continue their collaboration. The client communicates with the Customer Success Department, which not only provides technical support but also assists in monitoring and analyzing key KPIs, optimizing processes, and implementing new functionalities from ongoing releases.
The LEAFIO AI team is enthusiastic about the partnership and confident that Local Discounter is well-equipped for further growth and success with the new tools.
