Benchmarks & Client Cases

Retail Replenishment Flow

The Challenge


Previous State 

Problem

High pallet return rate to the warehouse: 27%

83% of the time of the replenishment team allocated to non-value-added tasks

Customers leave the store after prolonged periods waiting for support from a salesperson



Root Causes

Goods received not organised by store category, resulting in significant movements

Several failed attempts to replenish the same article, due to inaccuracies with the store planogram

Items that do not have a defined location are replenished, causing entropy in the operation

Team of busy salespeople replenishing during the day, as opposed to selling



The Solution

Future State - Digital Daily KAIZEN™

• Sorting cell to reorganise incoming goods, minimising redundant storage movements

Creation of an accessible area for goods to be brought close to the shelves to reduce the replenishment time. Dedication of the replenishment team to this task

Easy-access area for easy replenishment of high turnover items

Daily team meetings for replenishment and sales

Receipt of goods 5 days per week, rather than 3, reducing the stock level in the store

The Results

The project generated a stock reduction and sales increase totalling £12m/year.


Productivity Increased by 33%

Productivity

Productivity increased by 33%

Pallet return decrease -70%

Pallet return rate

Pallet return rate decreased by 70%



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