Liquor store

White&Dry (Replenishment)

A customer story of a national liquor store retail chain with 127 locations and 2 000 active SKUs supply chain optimization and automation project has helped achieve target performance indicators and increase margins and sales. |

White and dry case study - replenishment

A national liquor store retail chain.

Locations:

127

Total assortment:

2,000

Challenge

Prior to the inventory management system implementation, “White&Dry” faced an imbalanced inventory in warehouses and stores. The growing company was suffering from an inventory surplus that was hampering growth and freezing funds. The entire replenishment process was decentralized and managed manually. Eventually, the retail chain regularly encountered overstocks in some stores and lost sales in others, as well as improper goods distribution expenses. 

The initiated project set the following goals:

  • standardized delivery scheduling;
  • improvement of incoming data;
  • calculation of optimal target stock balances;
  • automatic order generation;
  • 30% improved inventory turnover.

Process

The LEAFIO team kicked off a thorough business processes analysis and the replenishment team was allocated as part of the inventory management system implementation in the beverage chain. Prior to the system launch, the LEAFIO implementation team conducted a series of training sessions for the client’s employees. LEAFIO used algorithms to analyze the entire history of sales data and the system calculated the optimal target stock levels for each SKU at each location in the supply chain. The solution was scaled to the entire chain.

Outcomes

The fruitful work between the client’s and LEAFIO’s team resulted in the following:

  • inventory turnover decreased by 36% (from 87 to 64 days);
  • lost sales reduced by 5%;
  • 56% sales growth;
  • fully automated order generation process;
  • access to the tools for effective inventory management.

Marina Makarchuk, the Project Manager, emphasizes the team's involvement:

“From the very first meeting and throughout our collaboration, the professionalism, interest and involvement of the client's project team were best reflected in our implementation process. The necessary information was always provided on time and in a complete manner, the tasks were solved promptly and responsibly, and relationships were built on trust and mutual work results. The positive shift is evident: all orders are created automatically, KPIs are constantly improving and more stores are connected to the inventory management system.

Achieved Results

  • 56 %

    More sales

  • 36 %

    Improved turnover

  • 30 %

    Inventory reduction

  • 5 %

    Fewer lost sales

Guide "How not to Fail in Selecting an Inventory Optimization Tool"

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