Lotok
What Centralization of Inventory Management Means for a Business: The Experience of the Lotok Chain Stores
What Centralization of Inventory Management Means for a Business: The Experience of the Lotok Chain Stores
Lotok is a retail chain of various points of sale: supermarkets, convenience stores, and minimarkets.
Locations:
104
Assortment:
14,000 SKUs
Lotok is a retail chain that currently has 98 various points of sale: supermarkets, convenience stores, and minimarkets. Here, the visitors can make their daily purchases since the range includes basic food and non-food commodities.
Inventory management is one of the key processes in a retailer's business. An important efficiency indicator is the continuous availability of goods. The trigger to start optimizing inventory management in the "Lotok" chain was the fact that goods did not always appear on the shelves on time. There was a noticeable imbalance in the company:
This resulted in the search for software that would help solve these two core problems. Leafio Inventory Optimization is a system that fits both functionality and price.
“We understood that by means of this system we would have a continuous sufficient availability of products to meet the needs of sales.” – Andrew, Lotok Director
The project began with the analysis of inventory management-related business processes. Then the Leafio Inventory Optimization implementation plan was created, after which the project implementation began. In order to work with the system, the Lotok company created an inventory management department of 4 people who were in charge of the entire inflow of orders in the system, except for the fresh category.
It all started with the collection and transfer of data from the accounting system of the chain, followed by user training.
During the implementation in the Lotok chain, the following positive aspects of working with the program were noted:
Meet your demand every time
The system was successfully implemented. To date, all points of sales and the distribution center are connected to the software. The system helped the company solve a number of key tasks: to bring governance to centralized inventory management and to increase the product's on-shelf availability. This is what the Lotok retail chain achieved from the project:
“As far as the software is concerned, I would note its flexibility and the analytical unit operational capability. It makes it possible to make certain decisions for further response to inventory management.” – Andrew, Lotok Director
During the year, we opened 23 new stores that were connected to the Leafio system. When we switched to centralized ordering, our surplus was decreased. We reduced the amount of time we spent on managing inventory in stores. The program does not work on forecasting but is based on demand. Because of this, we are managing inventory and product availability incredibly well, which is very important to the customer.
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